Walmart Vs Amazon Which Company Is Performing Better?
03/08/2021
Business
This article will cover these topics:
- Comparison
- Growth
- Opportunities
Comparison
Walmart and Amazon have been really duking it out for the last 10 years for the title of being the biggest retail store on the planet. With both companies approximately providing almost the same service like grocery, apparels, electronic, home décor, entertainment and etc., but what make them differ?
Net Worth: In 2021 Walmart is currently worth over $500US billion while Amazon is now standing on $1US trillion.
Location: In 2021 Walmart have over 10,000 stores world wide while Amazon have almost only 5% of that, most of amazon location are Whole Foods grocery stores.
Consumers: Walmart get about 230 million customers in a week, while Amazon get about 50 million online shoppers to visit their site.
Ecommerce: Walmart only account 5% of ecommerce sales while Amazon still remains the undisputed number one in ecommerce, accounting for nearly 40% of ecommerce sales today.
Employment: Walmart employs more than 2.2 million associates worldwide while Amazon now employs nearly 1.3 million associates worldwide.
Inventory: Walmart sells approximately 120,000 items in stores, compared to the 35 million products sold in Walmart’s online store while Amazon has built an unimaginable catalog of more than 12 million products and if you expand this to Amazon Marketplace sellers as well, the number is closer to more than 350 million products.
Service: Walmart provide retail goods, fresh groceries, marketplace for seller banking which include (money transfer, tax prep, cashing check), auto service (at Sam Club location), fuel at Murphy gas station, photo printing shop & health services which include medication prescription and flu shot while Amazon provide retail goods, fresh groceries, marketplace for seller, streaming content, cloud computing, publishing and delivery.
Subscription: Walmart offer a $12.95 monthly subscription for free shipping no order minimum, save 5¢ on fuel at Murphy gas stations or Sam Club Centers and scan and go while you’re shopping at a local Walmart store while Amazon offer a $12.99 monthly subscription fee that provides free delivery, Prime Video, Amazon music and unlimited reading of book, magazines on any device.
Growth
Walmart sales grew 97% year-over-year in its fiscal second quarter 2021 (ended July 31, 2020), soaring past the 37% annual growth it reported in its fiscal second quarter 2020 (ended July 31, 2019). Its online marketplace sales were up by triple digits, meaning they outpaced its overall US ecommerce business.
Amazon delivered a record performance in 2020 with annual revenue up 38% to $386 billion, a yearly increase of over $100 billion.
What does this mean to Walmart? Well for starts they are moving in the right direction, they realized that the only way they can stay on top is to evolve with the market. Even though they only equate to 5% of ecommerce market by partnering with more sellers they’re slowly creeping up to Amazon dominancy but in other hand Amazon is now set on auto pilot mode because by the third quarter of 2021 Jeff Bezos will step down as chief executive of Amazon, leaving the helm of the company he founded 27 years ago.
Opportunities
Here why should invest in Walmart stock (WMT), the company has proven throughout the years it can achieve sustained success and stay relevant , and it has a significant brand awareness, their stock are as a solid equity investment that would fit well in your portfolio of a risk-averse, long-term investor. If you plan on reinvesting your dividends, Walmart is also provide a 1.5% in dividends which make it a great choice.
Here why you should invest in Amazon stock has been on fire for almost a decade and has multiple growth drivers to drive its top-line higher. Financial analysts expect sales to grow by almost 18% in 2021 to $435 billion. AMZN stock is valued at a forward price to sales multiple of almost 4 times.
This conclude that Walmart is is quickly gaining back it dominance it had 15 years ago. Walmart may be the current underdog for now, but anything can happen in the next 5 years. Disregarding the outcome, the true champion of retail in this epic rivalry as of right now is Amazon, it has created the most modern, effective, and powerful way to reach its audience by save its consumers time and money with easier, more streamlined methods of shopping. Even though you might save a little bit more money shopping at Walmart, Amazon have also allowed sellers and their shareholder to make a whole lot of money.
source: