Liberty Interactive QVC Group (QRTEA) and Amazon.com (NASDAQ:AMZN) Head to Head Review

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

Insider and Institutional Ownership

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60.2% of Amazon.com shares are held by institutional investors. Comparatively, 87.4% of Liberty Interactive QVC Group shares are held by institutional investors. 17.7% of Amazon.com shares are held by insiders. Comparatively, 10.7% of Liberty Interactive QVC Group shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Amazon.com and Liberty Interactive QVC Group’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Amazon.com $177.87 billion 3.94 $3.03 billion $4.55 318.35
Liberty Interactive QVC Group $10.38 billion 1.06 $2.44 billion $3.25 7.66

Amazon.com has higher revenue and earnings than Liberty Interactive QVC Group. Liberty Interactive QVC Group 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 price targets for Amazon.com and Liberty Interactive QVC Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Amazon.com 0 3 48 1 2.96
Liberty Interactive QVC Group 1 1 9 0 2.73

Amazon.com presently has a consensus price target of $1,499.48, indicating a potential upside of 3.52%. Liberty Interactive QVC Group has a consensus price target of $32.22, indicating a potential upside of 29.46%. Given Liberty Interactive QVC Group’s higher possible upside, analysts plainly believe Liberty Interactive QVC Group is more favorable than Amazon.com.

Profitability

This table compares Amazon.com and Liberty Interactive QVC Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Amazon.com 1.71% 9.23% 2.16%
Liberty Interactive QVC Group 11.64% 17.97% 6.67%

Volatility and Risk

Amazon.com has a beta of 1.59, suggesting that its stock price is 59% more volatile than the S&P 500. Comparatively, Liberty Interactive QVC Group has a beta of 1.38, suggesting that its stock price is 38% more volatile than the S&P 500.

Summary

Amazon.com beats Liberty Interactive QVC Group on 10 of the 15 factors compared between the two stocks.

Amazon.com Company Profile

Amazon.com, Inc. engages in the retail sale of consumer products and subscriptions in North America and internationally. The company operates through three segments: North America, International, and Amazon Web Services (AWS) segments. It sells merchandise and content purchased for resale from vendors, as well as those offered by third-party sellers through physical stores and retail Websites, such as amazon.com, amazon.ca, amazon.com.mx, amazon.com.au, amazon.com.br, amazon.cn, amazon.fr, amazon.de, amazon.in, amazon.it, amazon.co.jp, amazon.nl, amazon.es, and amazon.co.uk. The company also manufactures and sells electronic devices, including kindle e-readers, fire tablets, fire TVs, and echo devices; and provides Kindle Direct Publishing, an online service that allows independent authors and publishers to make their books available in the Kindle Store. In addition, it offers programs that enable sellers to sell their products on its Websites, as well as their own branded Websites; and programs that allow authors, musicians, filmmakers, app developers, and others to publish and sell content. Further, the company provides compute, storage, database, and other AWS services, as well as fulfillment, publishing, digital content subscriptions, advertising, and co-branded credit card agreement services. Additionally, it offers Amazon Prime, a membership program, which provides free shipping of various items; access to unlimited streaming of movies and TV episodes; and other services. It serves consumers, sellers, developers, enterprises, and content creators. The company was founded in 1994 and is headquartered in Seattle, Washington.

Liberty Interactive QVC Group Company Profile

Liberty Interactive Corporation owns interests in subsidiaries and other companies, which are primarily engaged in the video and online commerce industries. Through its subsidiaries and affiliates, the Company operates in North America, Europe and Asia. Its principal businesses and assets include its subsidiaries QVC, Inc. (QVC), zulily, llc (zulily) and and Evite, Inc. (Evite). The Company’s segments include QVC, zulily, and Corporate and other. Evite is an online invitation and social event planning service on the Web. As of December 31, 2016, QVC marketed and sold a range of consumer products primarily through live merchandise-focused televised shopping programs distributed to approximately 362 million households each day and through its Websites, including QVC.com, and other interactive media, such as mobile applications. Zulily’s merchandise includes women’s, children’s and men’s apparel, children’s merchandise and other products, such as kitchen accessories and home decor.

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