Rakuten Group (OTCMKTS:RKUNF – Get Free Report) and Amazon.com (NASDAQ:AMZN – Get Free Report) are both consumer cyclical companies, but which one is the better business? Revenue, Dividends, Profitability, Institutions Compare two businesses based on investor ownership, risk, analyst recommendations, and valuation strength.
Analyst recommendations
This is a summary of Rakuten Group and Amazon.com’s recent valuations and price targets as reported by MarketBeat.
| sales evaluation | Hold evaluation | buy evaluation | strong buy rating | Evaluation score | |
| rakuten group | 0 | 0 | 0 | 0 | Not applicable |
| Amazon.com | 0 | 1 | 43 | 1 | 3.00 |
Amazon.com’s consensus price target is $202.80, suggesting 16.13% upside potential. Given Amazon.com’s higher upside potential, analysts clearly believe that Amazon.com has an advantage over Rakuten Group.
Profitability
This table compares the net profit margin, return on equity, and return on assets for Rakuten Group and Amazon.com.
| net profit margin | Return on equity | return on assets | |
| rakuten group | Not applicable | Not applicable | Not applicable |
| Amazon.com | 5.29% | 16.61% | 6.01% |
Appraisal value and profit
This table compares the top-line revenue, earnings per share (EPS), and valuation of Rakuten Group and Amazon.com.
| profit | Price/sales ratio | Net income | Earnings per share | stock price earnings ratio | |
| rakuten group | Not applicable | Not applicable | Not applicable | $27.96 | 0.17 |
| Amazon.com | $574.79 billion | 3.16 | $30.43 billion | $2.90 | 60.22 |
Amazon.com has higher sales and profits than Rakuten Group. Rakuten Group is trading at a lower price-to-earnings ratio than Amazon.com, making it the more affordable of the two stocks at the moment.
Institutional and insider ownership
Institutional investors hold 18.9% of Rakuten Group shares. In contrast, 72.2% of Amazon.com stock is held by institutional investors. 12.3% of Amazon.com stock is owned by company insiders. Strong institutional ownership indicates that large asset managers, hedge funds, and endowments believe the company is poised for long-term growth.
summary
Amazon.com outperforms Rakuten Group in 10 out of 11 factors comparing the two stocks.
About Rakuten Group
(Get Free Report)
Rakuten Group, Inc. provides e-commerce, fintech, digital content, and communication services to a variety of users both domestically and internationally. The company operates through its three segments: Internet Services, FinTech, and Mobile. The Internet services business provides various EC sites such as Rakuten Market, Internet shopping malls, online cashback sites, travel reservation sites, portal sites, and digital content sites. It also provides messaging services and sells advertising. And we manage professional sports teams. In the FinTech business, we provide financial services such as banking/securities, credit cards, life insurance, non-life insurance, electronic payment business, and spot trading of crypto assets (virtual currency) via the Internet. The mobile business provides communication services, technology, power supply, etc. , digital content site services, etc. The company was previously known as Rakuten, Inc., but changed its name to Rakuten Group, Inc. in April 2021. Rakuten Group, Inc. was founded in 1997 and is headquartered in Setagaya, Japan.
About Amazon
(Get Free Report)
Amazon.com, Inc. provides retail sales, advertising, and subscription services for consumer products through online and brick-and-mortar stores in North America and internationally. The company operates through three segments: North America, International, and Amazon Web Services (AWS). The company also manufactures and sells electronic devices such as the Kindle, Fire tablet, Fire TV, Echo, Ring, Blink, and eero. We develop and produce media content. In addition, the company offers a program that allows sellers to sell products in their own stores. A program that allows authors, independent publishers, musicians, filmmakers, Twitch streamers, skill and app developers, and more to publish and sell content. Additionally, we provide computing, storage, database, analytics, and machine learning services, as well as advertising services through programs such as sponsored ads, display ads, and video ads. Additionally, the company also offers a membership program, Amazon Prime. The Company’s products offered through its stores include items and content purchased for resale, as well as products provided by third-party sellers. We serve consumers, merchants, developers, businesses, content creators, advertisers, and employees. Amazon.com, Inc. was founded in 1994 and is headquartered in Seattle, Washington.
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