Head to Head Survey: Liberty Interactive Corporation (QVCA) & Amazon.com (AMZN)
Liberty Interactive Corporation (NASDAQ: QVCA) and Amazon.com (NASDAQ:AMZN) are both large-cap retail/wholesale companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, profitability, risk, analyst recommendations, institutional ownership, dividends and earnings.
Volatility and Risk
Liberty Interactive Corporation has a beta of 1.24, indicating that its stock price is 24% more volatile than the S&P 500. Comparatively, Amazon.com has a beta of 1.48, indicating that its stock price is 48% more volatile than the S&P 500.
This table compares Liberty Interactive Corporation and Amazon.com’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Liberty Interactive Corporation||4.47%||10.65%||3.71%|
Institutional and Insider Ownership
88.9% of Liberty Interactive Corporation shares are owned by institutional investors. Comparatively, 60.8% of Amazon.com shares are owned by institutional investors. 10.7% of Liberty Interactive Corporation shares are owned by insiders. Comparatively, 17.7% of Amazon.com shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Earnings & Valuation
This table compares Liberty Interactive Corporation and Amazon.com’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Liberty Interactive Corporation||$10.10 billion||1.01||$1.78 billion||$0.97||23.42|
|Amazon.com||$150.12 billion||3.13||$12.30 billion||$3.94||248.29|
Amazon.com has higher revenue and earnings than Liberty Interactive Corporation. Liberty Interactive Corporation is trading at a lower price-to-earnings ratio than Amazon.com, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings and recommmendations for Liberty Interactive Corporation and Amazon.com, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Liberty Interactive Corporation||0||1||7||0||2.88|
Liberty Interactive Corporation presently has a consensus target price of $29.57, indicating a potential upside of 30.16%. Amazon.com has a consensus target price of $1,087.30, indicating a potential upside of 11.15%. Given Liberty Interactive Corporation’s higher probable upside, research analysts plainly believe Liberty Interactive Corporation is more favorable than Amazon.com.
Amazon.com beats Liberty Interactive Corporation on 10 of the 15 factors compared between the two stocks.
About Liberty Interactive Corporation
Liberty Interactive Corporation owns interests in subsidiaries and other companies, which are primarily engaged in the video and online commerce industries. Through its subsidiaries and affiliates, the Company operates in North America, Europe and Asia. Its principal businesses and assets include its subsidiaries QVC, Inc. (QVC), zulily, llc (zulily) and and Evite, Inc. (Evite). The Company’s segments include QVC, zulily, and Corporate and other. Evite is an online invitation and social event planning service on the Web. As of December 31, 2016, QVC marketed and sold a range of consumer products primarily through live merchandise-focused televised shopping programs distributed to approximately 362 million households each day and through its Websites, including QVC.com, and other interactive media, such as mobile applications. Zulily’s merchandise includes women’s, children’s and men’s apparel, children’s merchandise and other products, such as kitchen accessories and home decor.
Amazon.com, Inc. offers a range of products and services through its Websites. The Company operates through three segments: North America, International and Amazon Web Services (AWS). The Company’s products include merchandise and content that it purchases for resale from vendors and those offered by third-party sellers. It also manufactures and sells electronic devices. The Company, through its subsidiary, Whole Foods Market, Inc., offers healthy and organic food and staples across its stores. The Company also offers a range of products like whole trade bananas, organic avocados, organic large brown eggs, organic responsibly-farmed salmon and tilapia, organic baby kale and baby lettuce, animal-welfare-rated 85% lean ground beef, creamy and crunchy almond butter, organic gala and fuji apples, organic rotisserie chicken.
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