Analyzing Amazon.com (NASDAQ:AMZN) and PSQ (NYSE:PSQH)

Amazon.com (NASDAQ:AMZN) and PSQ (NYSE:PSQH) are both retail/wholesale companies, but which is the better business? We will compare the two businesses based on the strength of their risk, analyst recommendations, dividends, institutional ownership, profitability, valuation and earnings.

Insider and Institutional Ownership

72.2% of Amazon.com shares are held by institutional investors. Comparatively, 17.3% of PSQ shares are held by institutional investors. 10.8% of Amazon.com shares are held by company insiders. Comparatively, 32.1% of PSQ shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk & Volatility

Amazon.com has a beta of 1.37, indicating that its share price is 37% more volatile than the S&P 500. Comparatively, PSQ has a beta of 0.06, indicating that its share price is 94% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Amazon.com and PSQ, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Amazon.com	0	4	54	1	2.95
PSQ	1	0	1	0	2.00

Amazon.com presently has a consensus price target of $295.91, suggesting a potential upside of 21.77%. PSQ has a consensus price target of $3.50, suggesting a potential upside of 282.93%. Given PSQ’s higher probable upside, analysts clearly believe PSQ is more favorable than Amazon.com.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Amazon.com	11.06%	23.62%	11.42%
PSQ	-178.95%	-184.74%	-62.82%

Valuation and Earnings

This table compares Amazon.com and PSQ”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Amazon.com	$637.96 billion	4.07	$59.25 billion	$7.08	34.32
PSQ	$23.20 million	1.82	-$57.69 million	($1.20)	-0.76

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

Summary

Amazon.com beats PSQ on 13 of the 15 factors compared between the two stocks.

About Amazon.com

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.

About PSQ

PSQ Holdings, Inc., together with its subsidiaries, operates an online marketplace through advertising and eCommerce in the United States. It operates through two segments, Marketplace and Brands segments. The PSQ platform is accessible through its mobile application and website. The company also sells diapers and wipes to mothers online under the EveryLife brand name. PSQ Holdings, Inc. is headquartered in West Palm Beach, Florida.