Amazon.com (NASDAQ:AMZN) and Auto Trader Group (OTCMKTS:ATDRY) Critical Comparison

Amazon.com (NASDAQ:AMZN) and Auto Trader Group (OTCMKTS:ATDRY) are both retail/wholesale companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, profitability, earnings, analyst recommendations, institutional ownership, dividends and valuation.

Analyst Recommendations

This is a summary of current recommendations and price targets for Amazon.com and Auto Trader Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Amazon.com	0	3	57	0	2.95
Auto Trader Group	1	3	1	0	2.00

Amazon.com presently has a consensus price target of $312.78, indicating a potential upside of 33.60%. Given Amazon.com’s stronger consensus rating and higher probable upside, equities analysts clearly believe Amazon.com is more favorable than Auto Trader Group.

Volatility and Risk

Amazon.com has a beta of 1.45, indicating that its share price is 45% more volatile than the S&P 500. Comparatively, Auto Trader Group has a beta of 1.15, indicating that its share price is 15% more volatile than the S&P 500.

Valuation and Earnings

This table compares Amazon.com and Auto Trader Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Amazon.com	$742.78 billion	3.39	$77.67 billion	$8.36	28.00
Auto Trader Group	$836.74 million	5.97	$393.91 million	N/A	N/A

Amazon.com has higher revenue and earnings than Auto Trader Group.

Insider & Institutional Ownership

72.2% of Amazon.com shares are owned by institutional investors. Comparatively, 0.0% of Auto Trader Group shares are owned by institutional investors. 8.9% of Amazon.com shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Amazon.com and Auto Trader Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Amazon.com	12.22%	19.92%	9.86%
Auto Trader Group	N/A	N/A	N/A

Dividends

Amazon.com pays an annual dividend of $0.20 per share and has a dividend yield of 0.1%. Auto Trader Group pays an annual dividend of $0.02 per share and has a dividend yield of 1.3%. Amazon.com pays out 2.4% of its earnings in the form of a dividend.

Summary

Amazon.com beats Auto Trader Group on 11 of the 14 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 Auto Trader Group

Auto Trader Group plc operates in the digital automotive marketplace in the United Kingdom and Ireland. The company provides vehicle advertisement on its websites for private sellers, as well as insurance and loan financing products to consumers; and display advertising on its websites for manufacturers and their advertising agencies. The company offers its products to retailers, home traders, and logistics firms. Auto Trader Group plc was founded in 1977 and is headquartered in Manchester, the United Kingdom.