- Amazon holds nearly 40% of the online retail market and Walmart has over 10,500 physical stores.
- Some think that Amazon is currently undervalued, which could make it the right buy. But others think that a drawn-out recession could be exactly what Walmart needs to compete with Amazon in a big way
- On the surface, Walmart does have bigger revenue numbers. However, Amazon is growing revenue faster based on the year-over-year look.
While both companies satisfy the needs of millions of shoppers each year, there are many differences that set these companies apart in the eyes of the stock market. Let’s take a closer look at both Amazon and Walmart stock to gain a better understanding of how these two mega-companies stack up against each other in 2022.
Amazon vs. Walmart: How Do These Stocks Compare?
It’s no secret that both Amazon and Walmart are major players in the retail industry.
As a shopper, you’ve likely made a purchase recently at one or both of these stores. That’s not surprising when you consider that Amazon holds nearly 40% of the online retail market and Walmart has over 10,500 physical stores flying the company flag.
It’s clear that both of these companies are major players in the retail industry. But when it comes to the stock market, which company comes out on top?
Below you’ll find a deep dive into the numbers driving each of these companies.
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Walmart vs. Amazon: Share Price Snapshot
To kick things off, let’s look at the current share prices.
As of August 31, 2022, Walmart’s share price is $132.34. The 52-week high water mark was $160.77, while the low point was $117.27. As with most of the stock market, WMT has shown a relatively bumpy year. WMT is currently down 8.43% from the start of the year.
On the other side of the table, Amazon’s share price is sitting at $127.69. The year has seen even more volatility in Amazon’s share prices, with a 52-week high of $188.11 and a low point of $101.26. Since the start of the year, AMZN is down 25.13%.
With this information, it’s easy to see that AMZN is showing more volatility than WMT. But these numbers just scratch the surface. In the sections below, you’ll find more details that give insight into these stock prices.
Walmart vs. Amazon: Revenue
In the quarter ending on June 30, 2022, Amazon reported $121.234 billion in revenue. That undeniably impressive number represents a 7.21% year-over-year increase. But it pales in comparison to Amazon’s revenue for the 12 previous months, which was $485.902 billion when counted back from June 2022. The year’s revenue indicates a 9.61% increase year over year.
Walmart posted even more impressive numbers. The revenue for the quarter ending on July 31, 2022, was $152.859 billion, which represents an 8.37% year-over-year increase. When the previous 12 months are taken into account, Walmarts revenue was $587.823 billion. Although impressive, this revenue only represents a 3.83% increase revenue year over year.
On the surface, Walmart does have bigger revenue numbers. However, Amazon is growing revenue faster based on the year-over-year look. If the pace continues, Amazon could eventually grow its revenue beyond Walmart’s.
Walmart vs. Amazon: Net Income
Revenue is important. But at the end of the day, the net income of a business is where the money is made.
Walmart had a net income of $5.149 billion in the quarter ending on July 31, 2022, which indicates a 20.42% year-over-year increase. The company’s annual net income for 2022 was $13.673 billion. This represents a slight increase of 1.21% year over year.
On the other side of the coin, Amazon posted a negative net income for the quarter ending on June 30, 2022. The company lost 2.028 billion, which indicates a 126.07% decline year over year.
However, the picture is rosier when you look at the past 12 months. During that time, Amazon’s net income was $11.607 billion. Although this still represents a year-over-year decline of 60.57%, the company is still bringing in a profit.
Walmart vs. Amazon: Assets and Liabilities
The assets owned and liabilities owed can definitively propel a company forward or hold it back. So, before you invest in a particular stock, it’s prudent to check the balance sheet for outstanding liabilities and worthwhile assets.
When it comes to Amazon, the company boasts a total of $419.728 billion in assets in the quarter ending on June 30, 2022. That’s a 16.49% year-over-year increase. Additionally, the company holds $288.326 billion in liabilities. Liabilities for the company have also increased since last year, by 17.44%.
Walmart holds fewer assets than Amazon, for a total of $246.142 billion in the quarter ending July 31, 2022. The company saw a 4.04% year-over-year increase in assets. Like Amazon, Walmart also holds substantial liabilities. In the quarter ending on July 31, 2022, the company had $160.542 billion in liabilities, which represents a 5.63% year-over-year increase.
Amazon holds more assets than Walmart. But it also holds more liabilities.
Walmart vs. Amazon: Shareholder Equity
As a shareholder, it’s interesting to see how current shareholders are being treated. Specifically, taking a close look at shareholder equity trends can help you get a better idea of what the company might do for your portfolio.
Walmart’s shareholders had $85.600 billion in equity for the quarter ending on July 31, 2022. That’s a 1.19% year-over-year increase. Amazon shareholders saw a more significant increase in equity for the quarter ending on June 30, 2022. They had $131.402 billion in equity, which represents a 14.46% year-over-year increase.
Of course, as a stockholder, you want to see your equity rise over time. At least in the past year, Amazon has provided a more substantial boost to its shareholders’ equity.
Walmart vs. Amazon: Dividends
When building an investment portfolio, you may or may not focus on dividends. A dividend is a payout given to stock owners. Many investors pursue dividends when building an investment portfolio designed to provide passive income.
Amazon doesn’t pay out dividends. But Walmart does. As of August 30, 2022, the dividend is $2.24, which equates to a dividend yield of 1.69%. Walmart has been paying out dividends since 1989.
Walmart vs. Amazon: Outlook
Both Amazon and Walmart have relatively bright futures that make it difficult to determine a clear winner. Walmart is staying strong during the currently tumultuous economic climate. But Amazon still clearly dominates the e-commerce market.
Some think that Amazon is currently undervalued, which could make it the right buy. But others think that a drawn-out recession could be exactly what Walmart needs to compete with Amazon in a big way. It should be noted that Amazon Web Services (AWS) providing cloud computing services has been a huge profit maker for Amazon.
Additionally, Walmart’s recent hire of a former PayPal PYPL executive indicates that the company might be looking to push towards a more user-friendly way to shop with the help of tech. However, it seems unlikely that the relatively clunky retailer could pivot far enough to catch up with Amazon’s tech-heavy business.
Ultimately, you’ll need to decide for yourself what’s the right move for your stock portfolio.
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