Critical Contrast: Amazon.com (NASDAQ:AMZN) vs. Ryohin Keikaku (OTCMKTS:RYKKY)

Amazon.com (NASDAQ:AMZN) and Ryohin Keikaku (OTCMKTS:RYKKY) are both large-cap consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, earnings, institutional ownership, valuation, dividends and risk.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Amazon.com	$716.92 billion	4.18	$77.67 billion	$12.43	22.39
Ryohin Keikaku	$5.28 billion	3.11	$340.67 million	$0.37	39.46

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

Insider and Institutional Ownership

72.2% of Amazon.com shares are held by institutional investors. 8.9% of Amazon.com shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current recommendations for Amazon.com and Ryohin Keikaku, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Amazon.com	0	3	56	0	2.95
Ryohin Keikaku	0	2	0	0	2.00

Amazon.com presently has a consensus price target of $322.56, indicating a potential upside of 15.89%. Given Amazon.com’s stronger consensus rating and higher possible upside, research analysts clearly believe Amazon.com is more favorable than Ryohin Keikaku.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Amazon.com	17.44%	18.00%	8.97%
Ryohin Keikaku	N/A	N/A	N/A

Summary

Amazon.com beats Ryohin Keikaku on 12 of the 13 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 Ryohin Keikaku

Ryohin Keikaku Co., Ltd. develops, manufactures, distributes, and sells apparel, household goods, and food items in Japan and internationally. It offers apparel products, comprising shirts, denim jeans, socks, sneakers, innerwear, sweaters, camisoles, cardigans, windbreakers, duffle coats, skirts, trousers, pajamas for adults and kids, maternity stoles, backpacks, handbags, case trolleys, hats, mufflers, gloves, stockings, umbrellas, slippers, sandals, and Japanese working clothes; household goods products, including towels, mattresses, toning water, skin care products, make-up tools, fragrance oils, aroma diffusers, air purifiers, stationary, storage boxes and cases, kitchenware, cutleries, refrigerators, toasters, kettles, juicers, mixers, coffee makers, rice cookers, cabinets, shelves, chairs, benches, sofas, beds, duvets, blankets, refillable bottles, baskets, buckets, cleaning tools, laundry supplies, emergency kits, reusable masks, clocks, flashlights, radios, speakers, extension cords, travel adapters, toys, and bicycles and tricycles; and food products, including retort pouch foods, baumkuchen banana, frying-pan-ready meal kits, butter chicken curry, cookies, crackers, canned foods, potato chips, seasonings, jams, soups, frozen foods, doughnuts, ice cream, coffee beans, sake, sparkling water, and apple juice, as well as houses. The company designs, manufactures, and sells home furnishings, such as furniture, accessories, antiques, curtains, and rugs; engages in the production, consulting, and design of residential and commercial spaces; and develops and manages green/environmental businesses. In addition, it operates MUJI to GO shops that offer travel, commuting, business, study, and play products; Found MUJI; MUJI 500; Café&Meal; IDÉE stores; MUJI Campsite, which operates campgrounds; MUJI HOUSE; and muji.com, an online store. Ryohin Keikaku Co., Ltd. was incorporated in 1979 and is based in Tokyo, Japan.