Amazon.com, Inc. (AMZN)vs RIVN Holdings, Inc. (RIVN)

Quick verdict

Amazon.com, Inc. (AMZN) and RIVN Holdings, Inc. (RIVN) appeal to different investors. On our six-factor framework, AMZN scores 2 and RIVN scores 4. AMZN looks cheaper on the multiples that matter, while RIVN grows faster and AMZN earns higher returns on capital. Overall, RIVN edges this comparison, but the right pick depends on whether you prioritise value, growth, income or balance-sheet safety.

2-year relative performance

At-a-glance comparison

Business model and revenue mix

Amazon.com, Inc. operates in Internet Retail (Consumer Cyclical), while RIVN Holdings, Inc. sits in Internet Retail (Consumer Cyclical). Because both compete in the same sector, this is a direct head-to-head and the financial differences below are especially meaningful. AMZN carries a beta of 1.53 versus 1.30 for RIVN, meaning AMZN has historically been the more volatile of the two.

Valuation

On valuation, AMZN is the cheaper stock. AMZN trades on a forward P/E of 45.95 and EV/EBITDA of 32.34, against n/a and 30.01 for RIVN. Price-to-sales is 20.74 vs 21.89, and free-cash-flow yield is 2.0% vs 1.1%. A higher multiple is only justified if the company can sustain faster growth or wider margins, which is exactly what the next sections test.

Growth profile

RIVN is the faster grower. AMZN has compounded revenue at 16.9% over three years with EPS growth of 25.7%, while RIVN has delivered 35.2% revenue and 41.2% EPS growth. Growth like this is the single biggest driver of long-term returns, but it also tends to come with a richer valuation, so it must be weighed against the multiples above.

Profitability and quality

On profitability and quality, AMZN is stronger. AMZN posts a 45.9% operating margin, 26.3% return on equity and 17.3% return on invested capital. RIVN posts 1.0%, -15.0% and -5.0% respectively. Return on invested capital above roughly 15% is a hallmark of a durable competitive advantage, so this metric deserves particular attention.

Balance-sheet risk

RIVN has the safer balance sheet. AMZN carries net-debt/EBITDA of 0.86x with a current ratio of 1.04, versus -1.26x and 2.87 for RIVN. Lower leverage gives a company more room to invest through a downturn and reduces the risk of dilution or distress.

Price performance and shareholder returns

Over the past year AMZN returned 4.0% against 99.3% for RIVN; on a three-year annualised basis it is 42.8% vs -1.2%. AMZN yields 0.0% and RIVN yields 2.1%. Past performance never guarantees future results, but the multi-year track record shows how the market has rewarded each business so far.

Which stock fits which investor

For value-oriented investors, AMZN is the better fit on today's multiples. Growth investors will likely prefer RIVN, which is expanding faster. Income investors should lean toward RIVN for its higher shareholder yield, while investors who prize quality-at-a-reasonable-price will favour AMZN for its superior returns on capital. This is a comparison of facts, not a recommendation — your time horizon, risk tolerance and existing holdings should drive the final decision.

• Value: AMZN
• Growth: RIVN
• Income: RIVN
• Quality: AMZN

Frequently asked questions

Is AMZN or RIVN the better buy right now?

Neither is universally "better." AMZN scores 2 and RIVN scores 4 on our six-factor framework. AMZN is cheaper, RIVN grows faster, and AMZN is higher quality — so the right pick depends on your objective.

Which stock is cheaper, AMZN or RIVN?

AMZN is the cheaper stock across forward P/E (45.95 vs n/a), EV/EBITDA (32.34 vs 30.01) and price-to-sales (20.74 vs 21.89).

Which has grown faster, AMZN or RIVN?

RIVN has the stronger growth profile, with three-year revenue CAGR of 16.9% for AMZN versus 35.2% for RIVN.

Which stock pays a bigger dividend?

AMZN yields 0.0% and RIVN yields 2.1%, so RIVN is the stronger income choice.

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