Head to Head Review: Liberty Interactive Corporation (LVNTA) and Amazon.com (AMZN)

Liberty Interactive Corporation (NASDAQ: LVNTA) and Amazon.com (NASDAQ:AMZN) are both mid-cap retail/wholesale companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, dividends, analyst recommendations, valuation, profitabiliy, risk and institutional ownership.

Profitability

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 416.61% 10.44% 3.58%
Amazon.com 1.81% 13.72% 3.44%

Risk and Volatility

Liberty Interactive Corporation has a beta of 0.99, suggesting that its share price is 1% less volatile than the S&P 500. Comparatively, Amazon.com has a beta of 1.47, suggesting that its share price is 47% more volatile than the S&P 500.

Insider and Institutional Ownership

89.6% of Liberty Interactive Corporation shares are held by institutional investors. Comparatively, 63.5% of Amazon.com shares are held by institutional investors. 17.7% of Amazon.com shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Liberty Interactive Corporation and Amazon.com’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Liberty Interactive Corporation $289.00 million 15.59 -$22.00 million $10.62 4.96
Amazon.com $142.57 billion 3.31 $12.22 billion $5.32 185.66

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.

Analyst Recommendations

This is a summary 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 3 0 2.75
Amazon.com 0 4 43 0 2.91

Liberty Interactive Corporation presently has a consensus target price of $55.25, suggesting a potential upside of 4.80%. Amazon.com has a consensus target price of $1,024.98, suggesting a potential upside of 3.77%. Given Liberty Interactive Corporation’s higher probable upside, analysts plainly believe Liberty Interactive Corporation is more favorable than Amazon.com.

Summary

Amazon.com beats Liberty Interactive Corporation on 8 of the 14 factors compared between the two stocks.

Liberty Interactive Corporation Company Profile

Liberty Interactive Corporation (Liberty) owns interests in subsidiaries and other companies, which are engaged in the video and online commerce industries. Through its subsidiaries and affiliates, the Company operates in North America, Europe and Asia. Its businesses and assets include its consolidated subsidiaries QVC, Inc. (QVC), Backcountry.com, Inc. (Backcountry), Bodybuilding.com, LLC (Bodybuilding), CommerceHub and Evite, Inc. (Evite) and its equity affiliates Expedia, Inc. (Expedia), HSN, Inc. (HSN), FTD Companies, Inc. (FTD), Interval Leisure Group, Inc. (Interval Leisure Group) and LendingTree, Inc. (LendingTree). QVC markets and sells a variety of consumer products through live televised shopping and via its Websites and other media, including QVC.com. Backcountry is an e-retailer for outdoor adventure, cycling, action sports and motorcycle gear and clothing. Bodybuilding is an Internet retailer of sports, fitness, and nutritional supplements.

Amazon.com Company Profile

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 North America segment consists of retail sales of consumer products (including from sellers) and subscriptions through North America-focused Websites, such as www.amazon.com, www.amazon.ca and www.amazon.com.mx. The International segment primarily consists of retail sales of consumer products (including from sellers) and subscriptions through internationally-focused Websites, such as www.amazon.com.au, www.amazon.nl, www.amazon.es and www.amazon.co.uk. The AWS segment consists of sales of compute, storage, database, and other service offerings for start-ups, enterprises, government agencies and academic institutions. The Company’s products include merchandise and content that it purchases for resale from vendors and those offered by third-party sellers. It manufactures and sells electronic devices.

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