2 months ago
47
Marc Guberti, The Motley Fool
Sat, April 18, 2026 astatine 1:22 PM CDT 4 min read
Amazon (NASDAQ: AMZN) and Walmart (NASDAQ: WMT) are the 2 largest retailers successful the world, and their stocks person delivered exceptional returns for semipermanent investors. Both stocks person outperformed the S&P 500 twelvemonth to date, but picking a victor betwixt these 2 stocks is amazingly easy.
While Amazon is the starring online retailer, Walmart's immense web of carnal locations makes it the apical brick-and-mortar retailer. Here's what investors should cognize erstwhile comparing these 2 stocks.
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Amazon wins erstwhile it comes to gross growth, with a 12.7% compound yearly maturation complaint (CAGR) implicit the past 3 years. Walmart lone has a 5.1% CAGR implicit the aforesaid stretch. Amazon besides leads successful 5-year, 10-year, 15-year, and 20-year gross CAGRs. Both companies person besides seen their gross maturation rates accelerate implicit the past 5 years.
These gross maturation trends amusement that Amazon has been gaining marketplace stock astatine a faster rate, and this inclination continued successful the astir caller quarter.
Amazon's Q4 results notched 14% year-over-year gross growth, with much than 20% maturation successful its unreality computing (AWS) and online advertizing segments. Amazon's customized AI chips besides nutrient much than $10 cardinal successful yearly gross astatine this point. Total institution income were $213.4 cardinal successful the 4th quarter,
Meanwhile, Walmart delivered 5.6% year-over-year gross maturation successful Q4 of its fiscal 2026, which ended connected Jan. 31. High maturation rates from e-commerce and online advertizing bash not override the information that astir each of Walmart's gross comes from its carnal locations. Amazon has done a overmuch amended occupation of diversifying implicit the years, and it shows successful its fiscal results.
Amazon's higher gross maturation besides comes with amended nett margins than Walmart. While the carnal retailer has done an fantabulous occupation of improving margins with online ads and e-commerce, its margins are inactive little than Amazon's.
To apical it each off, Amazon has a much charismatic valuation than Walmart. The e-commerce person has a 34.7 price-to-earings (P/E) ratio compared to Walmart's 45.3 P/E. Amazon's little valuation comes with faster gross and nett income growth, positive much semipermanent catalysts.
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