iPower (NASDAQ:IPW) versus Amazon.com (NASDAQ:AMZN) Financial Analysis

iPower (NASDAQ:IPW – Get Free Report) and Amazon.com (NASDAQ:AMZN – Get Free Report) are both consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, valuation, earnings, analyst recommendations, institutional ownership, profitability and risk.

Valuation & Earnings

This table compares iPower and Amazon.com”s gross revenue, earnings per share (EPS) and valuation.

Amazon.com has higher revenue and earnings than iPower. iPower is trading at a lower price-to-earnings ratio than Amazon.com, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

iPower has a beta of 2.96, meaning that its stock price is 196% more volatile than the S&P 500. Comparatively, Amazon.com has a beta of 1.45, meaning that its stock price is 45% more volatile than the S&P 500.

Institutional & Insider Ownership

2.7% of iPower shares are held by institutional investors. Comparatively, 72.2% of Amazon.com shares are held by institutional investors. 0.7% of iPower shares are held by company insiders. Comparatively, 8.9% of Amazon.com shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and price targets for iPower and Amazon.com, as reported by MarketBeat.com.

Amazon.com has a consensus price target of $325.12, suggesting a potential upside of 30.52%. Given Amazon.com’s stronger consensus rating and higher probable upside, analysts clearly believe Amazon.com is more favorable than iPower.

Profitability

This table compares iPower and Amazon.com’s net margins, return on equity and return on assets.

Summary

Amazon.com beats iPower on 12 of the 13 factors compared between the two stocks.

About iPower

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iPower Inc. operates as an online retailer and supplier of consumer home, garden, and pet products for commercial businesses and individuals in the United States. The company offers grow light systems; advanced heating, ventilation, and air conditioning systems; water pumps, heaters, chillers, and filters; nutrient and fertilizer delivery systems; and various growing media products. It also provides general gardening products, including environmental sensors and controls; and home products, which comprise commercial fans, floor and wall fans, storage and shelving units, and chairs. The company sells its products under the iPower and Simple Deluxe brand names through zenhydro.com, simpledeluxe.com, and various third-party online platforms. The company was formerly known as BZRTH Inc. and changed its name to iPower Inc. in September 2020. iPower Inc. was incorporated in 2018 and is based in Rancho Cucamonga, California.

About Amazon.com

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Amazon.com, Inc. engages in the retail sale of consumer products, advertising, and subscriptions service through online and physical stores in North America and internationally. The company operates through three segments: North America, International, and Amazon Web Services (AWS). It also manufactures and sells electronic devices, including Kindle, Fire tablets, Fire TVs, Echo, Ring, Blink, and eero; and develops and produces media content. In addition, the company offers programs that enable sellers to sell their products in its stores; and programs that allow authors, independent publishers, musicians, filmmakers, Twitch streamers, skill and app developers, and others to publish and sell content. Further, it provides compute, storage, database, analytics, machine learning, and other services, as well as advertising services through programs, such as sponsored ads, display, and video advertising. Additionally, the company offers Amazon Prime, a membership program. The company's products offered through its stores include merchandise and content purchased for resale and products offered by third-party sellers. It serves consumers, sellers, developers, enterprises, content creators, advertisers, and employees. Amazon.com, Inc. was incorporated in 1994 and is headquartered in Seattle, Washington.