<div id="readability-page-1">Investors looking to add dominant tech businesses to their portfolios don't necessarily have a huge list of stocks to choose from. However, while the options are limited, the choices are pretty clear. Amazon (AMZN -0.64%) and Apple (AAPL -1.20%) certainly dominate their tech sectors. And most of you reading this probably use at least one of their products or services on a daily basis, which means you have some unique insights into these companies from a consumer perspective. But which of these two &#34;Magnificent Seven&#34; stocks is the better one to buy right now? <h2>The case for Amazon</h2> Amazon is in an advantageous position to generate durable sales growth. That's because it benefits from multiple secular trends. Investors are likely familiar with the business being a dominant force in the world of e-commerce, as almost 40% of all spending online in the U.S. goes through Amazon.com. However, the company is also a leader in cloud computing with its Amazon Web Services (AWS) division, which has been the company's growth and profit driver in recent times. Then there's Amazon's digital advertising, a segment that raked in $57.3 billion in annual run rate revenue in Q3 (ended Sept. 30). Shareholders have given Amazon a pass when it comes to profitability, simply because the business was focused on investing heavily in growth initiatives. But CEO Andy Jassy has now created a more financially fit organization, emphasizing cost cuts and operational efficiencies. In the most recent quarter, Amazon reported operating income of $17.4 billion, which was up 55.3% year over year. This was the company's &#34;highest quarterly operating income ever,&#34; according to CFO Brian Olsavsky. In the current quarter, operating income is expected to rise 36.4% (at the midpoint) year over year. Given the impressive trajectory of the bottom line in the past several quarters, investors can certainly be encouraged by just how much higher earnings can rise. Amazon shares have surged 148% higher since the start of 2023, and they are up a whopping 1,290% in the past decade. But the stock still looks compelling from a valuation perspective, trading at a price-to-free-cash-flow (P/FCF) ratio of 31. That's near the cheapest it has been since November 2014. <h2>The case for Apple</h2> Apple sells some of the most in-demand tech products in the world, including the iPhone, MacBook, and Watch. The business has long been a leader in the consumer technology industry. And its ability to create beautifully designed hardware and software has resulted in a tremendous brand moat. According to Interbrand, Apple's brand is estimated to be worth almost $500 billion, more than any other company on Earth. This has historically allowed the business to flex its pricing power because consumers resonate strongly with its offerings. That competitive brand strength is bolstered by Apple's ecosystem, which is the seamless combination of its products and services that consumers seem to be locked into. Warren Buffett, whose Berkshire Hathaway remains a large shareholder even after selling roughly 60% of its Apple stock, argues that many iPhone users are so attached to their devices that even if offered $10,000 to never use an iPhone ever again, they would not be able to accept that deal. There might not be any businesses that are as financially sound as Apple. As of Sept. 30, it had a net cash position of $50 billion. Coupled with a ridiculous level of profitability, this means the company can always operate from a position of power, investing in new initiatives no matter what the broader macro picture looks like. <h2>The better buy right now is...</h2> Apple shares have climbed 733% in the past decade. But unlike Amazon, I don't think the valuation is compelling at all. The stock trades at a P/FCF ratio of 32, which is close to the most expensive level in the trailing 10-year period. Given this historically steep valuation, I think Amazon is the better stock to buy right now. </div>

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Investors are considering whether to buy Amazon or Apple stocks. Amazon is positioned for growth with strong sales in e-commerce, cloud computing, and digital advertising, reporting a 55.3% increase in operating income year-over-year. Its shares have surged 148% in 2023. In contrast, Apple, known for its strong brand and ecosystem, has a solid financial position but trades at a high valuation. The analysis suggests Amazon is the better buy due to its compelling valuation and growth potential compared to Apple's expensive stock price.

- Investors have limited options for dominant tech stocks, with Amazon and Apple being the primary choices.  
- Amazon is positioned for durable sales growth, benefiting from e-commerce, cloud computing, and digital advertising, while also improving profitability and operational efficiency.  
- In contrast, although Apple has a strong brand and financial position, its high valuation makes Amazon the more attractive buy at this time.

Best Stock to Buy Right Now: Amazon vs. Apple