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

Quick verdict

Based on the supplied data, AMZN and SMCI differ substantially in profitability and valuation profile. AMZN posts a TTM P/E of 29.15, forward P/E of 45.95 and a PEG of 0.82, supported by net margin of 12.22% and ROE of 23.34%. SMCI shows a TTM P/E of 0 (not meaningful, reflecting negative earnings), P/S of 19.57, operating margin of -12.96% and ROE of -18.28%. The overall scores assigned are 4 for AMZN and 2 for SMCI, with AMZN rated A across valuation, growth, quality and momentum, while SMCI carries B ratings for balance sheet and income only. AMZN is tagged high-volatility; SMCI is tagged income, mature, despite negative net margin. Momentum diverges too: AMZN's YTD return is -18.31% versus SMCI's 23.16%, while over one year AMZN returned 4.05% against SMCI's -1.45%.

2-year relative performance

At-a-glance comparison

Business model and revenue mix

AMZN is described as operating a large-scale global retail enterprise, distributing consumer goods and subscription services through online platforms and physical stores across North America and internationally, within Consumer Cyclical/Specialty Retail. SMCI is classified in the data under Healthcare/Drug Manufacturers, with a brief description stating it operates in the drug manufacturers space within the healthcare sector. These are structurally different business classifications, with AMZN's model built on retail distribution and subscription revenue, while SMCI's stated sector points to pharmaceutical manufacturing operations, though its underlying financial metrics (e.g. gross margin of 33.7%, negative operating margin) should be read in that context.

Valuation

AMZN trades at a TTM P/E of 29.15 and forward P/E of 45.95, with a P/S of 3.58, P/B of 6.02, EV/EBITDA of 14.7 and PEG of 0.82. SMCI's TTM and forward P/E are both listed as 0, reflecting an absence of a meaningful multiple likely tied to negative earnings, alongside a notably elevated P/S of 19.57 versus AMZN's 3.58. SMCI's P/B of 2.94 is lower than AMZN's 6.02, and its EV/EBITDA of 15.52 is close to AMZN's 14.7. FCF yield is 1.97% for AMZN versus a thinner 0.61% for SMCI. The valuation verdict grade is A, reflecting AMZN's relatively low PEG of 0.82 against SMCI's undefined PEG of 0.

Growth profile

AMZN shows consistent multi-year growth, with revenue CAGR of 12.38% over three years and 13.69% over five years, alongside EPS CAGR of 28.8% (3-year) and 20.28% (5-year). SMCI's growth figures are negative across the board: revenue CAGR of -4.3% (3-year) and -4.43% (5-year), with EPS CAGR of -5.59% (3-year) and -2.88% (5-year). This contrast underpins the growth verdict of A, which per the data applies to AMZN given its double-digit positive growth trajectory, whereas SMCI's negative revenue and earnings trends over both three- and five-year periods indicate a shrinking base rather than expansion.

Profitability and quality

AMZN reports a gross margin of 50.6%, operating margin of 11.5% and net margin of 12.22%, with ROE of 23.34% and ROIC of 9.65%. SMCI's gross margin is lower at 33.7%, and it posts negative operating margin of -12.96% and negative net margin of -7.89%, with ROE of -18.28% and ROIC of -5.07%. The quality verdict of A applies to the comparison, consistent with AMZN's positive returns on equity and capital versus SMCI's negative figures across all core profitability metrics in the supplied data, indicating the two companies are at very different stages of financial performance.

Balance-sheet risk

AMZN holds cash of approximately $34.9 billion against total debt of approximately $43.0 billion, with net debt/EBITDA of 0.86, a current ratio of 1.18 and interest coverage of 44.48. SMCI holds a comparable cash balance of approximately $35.0 billion against total debt of approximately $29.8 billion, giving a negative net debt/EBITDA of -0.86 (net cash position), a stronger current ratio of 2.88 and interest coverage of 43.56. The balance sheet verdict is graded B, reflecting that while SMCI shows a net cash position and higher liquidity ratio, AMZN maintains very strong interest coverage despite carrying net debt.

Price performance and shareholder returns

Over the trailing periods, AMZN's returns are -18.31% YTD, 4.05% over one year, an annualised 42.82% over three years and an annualised 25.48% over five years, with a maximum five-year drawdown of -55.71%. SMCI's returns are 23.16% YTD, -1.45% over one year, an annualised 0.78% over three years and an annualised 32.67% over five years, with a shallower maximum five-year drawdown of -26.29%. The momentum verdict of A and income verdict of B in the data reflect AMZN's stronger three- and five-year annualised returns against SMCI's more moderate three-year performance but comparatively lower peak-to-trough drawdown.

Which stock fits which investor

Per the bestFor data, AMZN is identified as more suited to those prioritising value, growth and quality characteristics, consistent with its A verdicts in valuation, growth and quality, its PEG of 0.82, and positive ROE of 23.34%. SMCI is identified as more suited to income-oriented considerations, aligning with its dividend yield of 3.17% and payout ratio of 22.96%, despite negative net margin of -7.89% and ROE of -18.28%. AMZN carries a high-volatility style tag, while SMCI is tagged income, mature. This is descriptive positioning based on the supplied verdicts and is not investment advice.

• Value: AMZN
• Growth: AMZN
• Income: SMCI
• Quality: AMZN

Frequently asked questions

Which company has stronger growth metrics?

Based on the data, AMZN shows stronger growth, with revenue CAGR of 12.38% (3-year) and 13.69% (5-year) and EPS CAGR of 28.8% (3-year) and 20.28% (5-year). SMCI's figures are negative across these periods, with revenue CAGR of -4.3% (3-year) and -4.43% (5-year), and EPS CAGR of -5.59% (3-year) and -2.88% (5-year), reflected in the growth verdict of A applying to AMZN.

Which company carries less debt relative to earnings?

SMCI shows a negative net debt/EBITDA of -0.86, indicating a net cash position, versus AMZN's net debt/EBITDA of 0.86. However, the balance sheet verdict is graded B overall, and AMZN's interest coverage of 44.48 is marginally higher than SMCI's 43.56.

How do valuations compare?

AMZN trades at a TTM P/E of 29.15 and PEG of 0.82, while SMCI shows a TTM P/E of 0 (not meaningful due to negative earnings) and an undefined PEG. SMCI's P/S ratio of 19.57 is notably higher than AMZN's 3.58, though SMCI's P/B of 2.94 is lower than AMZN's 6.02.

Which has performed better recently?

Over one year, AMZN returned 4.05% versus SMCI's -1.45%. Year-to-date, however, SMCI returned 23.16% compared with AMZN's -18.31%. Over five years annualised, SMCI's 32.67% exceeds AMZN's 25.48%, though AMZN's three-year annualised return of 42.82% is well above SMCI's 0.78%.

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