Amazon.com (NASDAQ:AMZN – Get Free Report) and iPower (NASDAQ:IPW – Get Free Report) are both consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, earnings, profitability, valuation, risk, institutional ownership and dividends.
Profitability
This table compares Amazon.com and iPower’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Amazon.com | 16.90% | 16.94% | 8.41% |
| iPower | -23.43% | -47.96% | -27.32% |
Dividends
Amazon.com pays an annual dividend of $0.20 per share and has a dividend yield of 0.1%. iPower pays an annual dividend of $0.71 per share and has a dividend yield of 40.3%. Amazon.com pays out 1.6% of its earnings in the form of a dividend. iPower pays out -0.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. iPower is clearly the better dividend stock, given its higher yield and lower payout ratio.
Earnings and Valuation
This table compares Amazon.com and iPower”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Amazon.com | $775.68 billion | 3.34 | $77.67 billion | $12.37 | 19.43 |
| iPower | $19.96 million | 0.01 | -$11.62 million | ($5,768.10) | -0.00 |
Amazon.com has higher revenue and earnings than iPower. iPower is trading at a lower price-to-earnings ratio than Amazon.com, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Amazon.com has a beta of 1.45, meaning that its share price is 45% more volatile than the S&P 500. Comparatively, iPower has a beta of 2.96, meaning that its share price is 196% more volatile than the S&P 500.
Analyst Ratings
This is a summary of current ratings and target prices for Amazon.com and iPower, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Amazon.com | 0 | 3 | 56 | 1 | 2.97 |
| iPower | 1 | 0 | 0 | 0 | 1.00 |
Amazon.com presently has a consensus price target of $320.86, indicating a potential upside of 33.50%. Given Amazon.com’s stronger consensus rating and higher probable upside, equities analysts clearly believe Amazon.com is more favorable than iPower.
Insider and Institutional Ownership
72.2% of Amazon.com shares are held by institutional investors. Comparatively, 2.7% of iPower shares are held by institutional investors. 8.9% of Amazon.com shares are held by company insiders. Comparatively, 0.7% of iPower shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Summary
Amazon.com beats iPower on 14 of the 17 factors compared between the two stocks.
About Amazon.com
Amazon.com, Inc. engages in the retail sale of consumer products, advertising, and subscriptions service through online and physical stores in North America and internationally. The company operates through three segments: North America, International, and Amazon Web Services (AWS). It also manufactures and sells electronic devices, including Kindle, Fire tablets, Fire TVs, Echo, Ring, Blink, and eero; and develops and produces media content. In addition, the company offers programs that enable sellers to sell their products in its stores; and programs that allow authors, independent publishers, musicians, filmmakers, Twitch streamers, skill and app developers, and others to publish and sell content. Further, it provides compute, storage, database, analytics, machine learning, and other services, as well as advertising services through programs, such as sponsored ads, display, and video advertising. Additionally, the company offers Amazon Prime, a membership program. The company's products offered through its stores include merchandise and content purchased for resale and products offered by third-party sellers. It serves consumers, sellers, developers, enterprises, content creators, advertisers, and employees. Amazon.com, Inc. was incorporated in 1994 and is headquartered in Seattle, Washington.
About iPower
iPower Inc. operates as an online retailer and supplier of consumer home, garden, and pet products for commercial businesses and individuals in the United States. The company offers grow light systems; advanced heating, ventilation, and air conditioning systems; water pumps, heaters, chillers, and filters; nutrient and fertilizer delivery systems; and various growing media products. It also provides general gardening products, including environmental sensors and controls; and home products, which comprise commercial fans, floor and wall fans, storage and shelving units, and chairs. The company sells its products under the iPower and Simple Deluxe brand names through zenhydro.com, simpledeluxe.com, and various third-party online platforms. The company was formerly known as BZRTH Inc. and changed its name to iPower Inc. in September 2020. iPower Inc. was incorporated in 2018 and is based in Rancho Cucamonga, California.
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