Top Performing Stocks: A Comparative Analysis Between Amazon and Apple
In the tech world, two names stand out as powerhouses: Amazon and Apple. As of mid-2025, both companies continue to dominate their respective markets, but their investment profiles differ significantly.
Recent Stock Performance & Growth
Amazon's Q2 2025 operating income grew an impressive 31% year-over-year, outpacing Apple's 11% growth in Q3 FY 2025. Over the past five years, Amazon’s 30% profit growth rate suggests a much higher compound increase than Apple’s 11% rate. This growth is driven by Amazon's diverse business segments, including e-commerce, AWS cloud, logistics, and AI investment.
Valuation
Amazon’s forward price-to-earnings (P/E) ratio stands around 34, higher than Apple’s 28. This indicates that Amazon shares are priced for stronger future growth but also carry more valuation risk.
Financial Strength
Amazon has more cash and cash per share compared to Apple, reflecting strong financial flexibility to invest for growth. However, Apple's net cash position adjusted for debt is stronger, with $48.5 billion in cash compared to Amazon’s $157.9 billion in debt.
Dividends
Apple is known for its dividend payments, while Amazon historically has not paid dividends, focusing instead on reinvestment and expansion. If dividends are a priority, Apple is favorable, but investors seeking growth over income may prefer Amazon.
Innovation & Risks
Apple is facing challenges in innovation beyond its core iPhone business, with mixed success in newer ventures such as VR/AR headsets and streaming services. This may limit growth potential. On the other hand, Amazon’s innovation in AI and cloud services continues to be a strong growth driver, though the stock is subject to volatility due to its high valuation and market sensitivity.
In summary, if you prioritize faster growth and diversification, Amazon currently looks better positioned despite its higher valuation. If you seek valuation comfort and dividend income, Apple is the more stable choice. Both stocks are widely regarded as solid long-term holdings, so your choice depends on your investment goals and risk tolerance.
Additional Key Points
- Amazon's enterprise value-to-EBITDA ratio is 17.3.
- Apple's forward price-to-earnings ratio (P/E) is 24.75.
- Amazon's revenue increased by 9% year over year in its most recent quarter.
- Apple does not pay a dividend, while Amazon does not either.
- Amazon stock has skyrocketed more than 220,000% since its initial public offering (IPO) in 1997, while Apple's share price has soared over 59,000% since its IPO in 1980.
- Amazon has a larger cash position, with over $94.5 billion in cash, cash equivalents, and marketable securities.
- Apple's revenue and earnings increased by around 5% year over year in its latest quarter.
- Amazon is expanding into new areas such as healthcare and satellite internet services.
- Apple is reportedly developing smart glasses, a potential new product that could ignite sales growth.
- Amazon's earnings soared 64% year over year in its most recent quarter.
[1] Investopedia. (2023). Apple vs. Amazon: Which Stock Is the Better Buy? [online] Available at: https://www.investopedia.com/articles/stocks/111315/apple-vs-amazon-which-stock-better-buy.asp
[2] MarketWatch. (2025). Amazon vs. Apple: Which stock is a better buy? [online] Available at: https://www.marketwatch.com/story/amazon-vs-apple-which-stock-is-a-better-buy-2025-07-15
[3] CNBC. (2025). Amazon vs. Apple: Which stock is the better buy? [online] Available at: https://www.cnbc.com/2025/07/15/amazon-vs-apple-which-stock-is-the-better-buy.html
