Amazon.com, Inc. (AMZN)vs Intel Corp. (INTC)

Quick verdict

Amazon and Intel sit at very different stages of financial health. Amazon trades at a P/E (TTM) of 30.03 and forward P/E of 45.95, supported by a net margin of 12.22%, ROE of 23.34%, and 3-year revenue CAGR of 12.38%. Intel shows a negative TTM P/E (-166.11), negative net margin (-5.9%), and negative ROE (-2.95%), reflecting recent losses, though its forward P/E of 40.53 implies expected improvement. The supplied verdicts rate Amazon 'A' for quality and balance sheet against Intel's also-'A' balance sheet score, alongside an overall score of 2 for Amazon versus 4 for Intel — a divergence between the quantitative profitability data and the assigned scores that readers should weigh carefully. Intel's 1-year return of 103.11% contrasts with Amazon's 4.05%, while Amazon has stronger long-run 3-year (42.82%) and 5-year (25.48%) annualised returns.

2-year relative performance

At-a-glance comparison

Business model and revenue mix

Amazon.com operates a large-scale global retail and subscription business, selling consumer goods and services through online platforms and physical stores across North America and internationally, classified under Consumer Cyclical / Specialty Retail. Intel designs, manufactures, and sells computing products and services through its CCG, DCAI, and Intel Foundry segments, based in Technology / Semiconductors. Amazon's market capitalisation of approximately $2.74 trillion is roughly 5.3 times Intel's $517.6 billion. Amazon's average trading volume (49.66 million shares) is lower than Intel's (134.16 million shares), and Intel carries a materially higher beta (2.187) versus Amazon's (1.461), consistent with Amazon's 'high-volatility' style tag and Intel's 'income, mature' tag, though the beta figures suggest Intel exhibits greater price sensitivity to market movements than Amazon over the measured period.

Valuation

Amazon trades at a TTM P/E of 30.03, a forward P/E of 45.95, a price-to-sales ratio of 3.69, a price-to-book of 6.2, and EV/EBITDA of 15.13, with a PEG ratio of 0.85 and FCF yield of 1.97%. Intel's TTM P/E is negative at -166.11 due to negative earnings, though its forward P/E of 40.53 is lower than Amazon's, and its price-to-sales (9.63) and EV/EBITDA (47.83) are both notably higher than Amazon's, while price-to-book (4.7) is lower. Intel's PEG of -0.02 reflects the distorting effect of negative or near-zero earnings growth denominators rather than a straightforward value signal. Intel's FCF yield of 3.54% exceeds Amazon's 1.97%. Both are assigned a 'B' valuation verdict.

Growth profile

Amazon shows a 3-year revenue CAGR of 12.38% and 5-year revenue CAGR of 13.69%, alongside a 3-year EPS CAGR of 28.8% and 5-year EPS CAGR of 20.28%. Intel's revenue growth has been weaker, with a 3-year CAGR of -0.47% (a decline) versus a 5-year CAGR of 14.27%. Intel's EPS CAGR of 98.66% over 3 years reflects a recovery off a low or negative base rather than sustained profit expansion, given the reported net losses, while its 5-year EPS CAGR stands at 9.28%. Both companies carry a 'B' growth verdict. Amazon's growth profile is broader-based across both revenue and earnings, whereas Intel's recent growth figures are more mixed and influenced by its underlying loss position.

Profitability and quality

Amazon reports a gross margin of 50.6%, operating margin of 11.5%, net margin of 12.22%, ROE of 23.34%, and ROIC of 9.65%. Intel's gross margin is lower at 35.43%, with a negative operating margin (-9.45%), negative net margin (-5.9%), negative ROE (-2.95%), and negative ROIC (-2.81%), indicating the company is currently loss-making at the operating and net level. Despite this, the supplied verdicts assign a quality rating of 'A', which sits alongside these negative profitability figures for Intel and should be read in that context. Amazon's profitability metrics are positive across all measures shown, consistent with its established retail and subscription operations.

Balance-sheet risk

Amazon holds cash of approximately $34.91 billion against total debt of $42.96 billion, a net debt/EBITDA ratio of 0.86, a current ratio of 1.18, and interest coverage of 44.48 times. Intel holds higher cash reserves of approximately $52.43 billion against total debt of $21.77 billion, a net debt/EBITDA ratio of 2.98, a current ratio of 2.31, and interest coverage of 14.63 times. Intel's current ratio and cash position appear stronger by these specific figures, while Amazon's net debt/EBITDA and interest coverage are more favourable. Both are assigned an 'A' balance sheet verdict, reflecting different underlying strengths — liquidity and cash for Intel, leverage coverage for Amazon.

Price performance and shareholder returns

Intel's 1-year return of 103.11% substantially outpaces Amazon's 4.05%, and its buyback yield (1.47%) and dividend yield (3.66%) contribute to shareholder returns alongside a payout ratio of 35.65%. Amazon pays no dividend (0% yield) but has a buyback yield of 2.37%. Over longer horizons, Amazon's 3-year annualised return (42.82%) and 5-year annualised return (25.48%) exceed Intel's 3-year (12.79%) and are comparable to Intel's 5-year (27.8%). Both stocks have experienced significant drawdowns, with Amazon's maximum 5-year drawdown at -55.71% versus Intel's -45.25%. Year-to-date, Amazon is down 18.31% and Intel down 25.9%, with both verdicts rated 'B' for momentum.

Which stock fits which investor

Based on the supplied 'bestFor' mapping, Intel is identified as better suited to investors prioritising value, growth, or income, reflected in its dividend yield of 3.66%, payout ratio of 35.65%, and lower forward P/E of 40.53 compared with Amazon's 45.95. Amazon is identified as better suited to investors prioritising quality, consistent with its positive net margin (12.22%), ROE (23.34%), and ROIC (9.65%) versus Intel's negative equivalents. Amazon's 'high-volatility' tag and Intel's 'income, mature' tag suggest different risk-return profiles; investors weighing current profitability against income and recovery potential may draw different conclusions from these same figures depending on which metrics they weight most heavily.

• Value: INTC
• Growth: INTC
• Income: INTC
• Quality: AMZN

Frequently asked questions

Which company is larger by market capitalisation?

Amazon is substantially larger, with a market capitalisation of approximately $2.74 trillion compared with Intel's approximately $517.6 billion.

Does either company pay a dividend?

Intel pays a dividend with a yield of 3.66% and a payout ratio of 35.65%. Amazon pays no dividend, showing a 0% dividend yield, though it has a buyback yield of 2.37% versus Intel's 1.47%.

Which stock has performed better recently?

Over 1 year, Intel's return of 103.11% exceeds Amazon's 4.05%. Year-to-date, both are negative, with Amazon down 18.31% and Intel down 25.9%. Over 3 and 5 years annualised, Amazon's returns of 42.82% and 25.48% are stronger than or comparable to Intel's 12.79% and 27.8% respectively.

Is Intel currently profitable?

Based on the supplied figures, Intel is not currently profitable at the net level, showing a net margin of -5.9%, operating margin of -9.45%, ROE of -2.95%, and a negative TTM P/E of -166.11, though its forward P/E of 40.53 implies analysts expect improved earnings ahead.

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