<div id="readability-page-1"><p>Two popular stocks that some investors might have on their radar right now are the retail juggernaut <strong>Walmart</strong> <span>(WMT<span> -0.68%</span>)</span> and e-commerce leader <strong>Amazon</strong> <span>(AMZN<span> -0.23%</span>)</span>. Both companies offer investors exposure to retail spending, and each has managed to dominate its niche, becoming fantastic long-term investments along the way. But which one looks like the better stock to buy right now?</p> <p>Let's look at the case for both to see why this matchup looks pretty even across the board.</p> <div><p><img src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84MjM2ODIvZ2V0dHlpbWFnZXMtMjE1MzA1MTc2NC0xMjAweDgwMC01YjJkZjc5LmpwZyZ3PTcwMA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="700" height="466" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84MjM2ODIvZ2V0dHlpbWFnZXMtMjE1MzA1MTc2NC0xMjAweDgwMC01YjJkZjc5LmpwZyZ3PTcwMA"/></p><p>Image source: Getty Images.</p> </div> <h2>The case for Walmart</h2> <p>Walmart's stock has been on a tear lately, skyrocketing 44% over the past year. Those gains come as the company continues to dominate the retail market, increase sales and earnings, and expand its services. Walmart's revenue rose about 5% in fiscal 2025 (which ended Jan. 31) to $681 billion, and its non-GAAP earnings rose 26% to $2.41 per share.</p> <p>The company's e-commerce sales surged 20% in the U.S., proving that Walmart is successfully expanding its business beyond its brick-and-mortar locations. It is also seeing strong growth from its advertising segment (up 24% in the U.S.).</p> <p>One of the biggest draws of owning Walmart stock is that its business is nearly recession-proof. The company holds about 21% of the grocery market in the U.S., and even during tough times, Americans buy groceries. There's also evidence that higher-income shoppers are moving toward Walmart as well, as they look for better deals in an uncertain economy.</p>  <p>With its strong position in retail, groceries, and its impressive sales and earnings, there's a lot to like about Walmart stock. Add to all of this the fact that Walmart pays a 1% dividend yield and has raised its dividend annually for over 50 years, and it's easy to see why this value stock is a mainstay in so many portfolios.</p> <h2>The case for Amazon</h2> <p>Amazon is an equally popular consumer goods stock, but the company has several business segments that have little to do with consumer goods, but a lot to do with the profits the company makes. For example, its North American e-commerce revenue accounts for about 61% of overall revenue last year, but just 36% of operating income. Meanwhile, the company's Amazon Web Services (AWS) cloud computing segment accounted for almost 17% of overall revenue, but it brought in about 58% of all operating income.</p> <p>Amazon controls about 30% of the cloud computing market, and it's an important business for Amazon, considering that artificial intelligence could push global cloud computing sales up to $2 trillion over the next five years. It is also making multiple investments in AI that are likely to pay off (and already paying off in some cases) in the coming years.</p>  <p>And then there's Amazon's fastest-growing business: Advertising. Sales from this high-margin segment popped 18% year over year in the first quarter (which ended March 31) and generated nearly $14 billion in revenue. Amazon is benefiting from its massive e-commerce platform of more than 200 million Prime members, which will likely continue to attract a lot of ad dollars in the future. eMarketer estimates Amazon could take 17% of the digital ad market in 2026, up from 11% in 2021.</p> <p>While Amazon doesn't pay a dividend, the company does have impressive financial growth. Total revenue rose 11% to $638 billion in 2024, and its non-GAAP earnings per share jumped 91% to $5.53. The company also ended the year with $38.2 billion in free cash flow, an increase of about 4% from the previous year. </p> <h2>Which is the better stock? It depends on your goals</h2> <p>Both Amazon and Walmart deserve a place in your portfolio, but deciding which one is better for you depends on what type of stock you're looking for. If you want to invest in a company that's essentially recession-proof and that has a long history of consistent (and growing) dividend payments, then Walmart is a no-brainer choice. On the other hand, if you want a strong e-commerce growth stock that's also benefiting from cloud computing, AI, and advertising, then go with Amazon.</p> <p>Walmart has a price-to-earnings ratio of about 41, while Amazon's is about 36. That's not much of a difference when it comes to deciding which is the better value. Which means that if you have enough to buy both stocks right now, it's probably a smart move. If not, then pick the one that best fits your investment goals.</p>                                                                            </div>

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<p>This article compares Walmart and Amazon as potential stock investments. Walmart's stock has risen 44% over the past year, driven by strong sales, earnings growth, and a 1% dividend yield. It dominates the grocery market and is considered recession-proof. In contrast, Amazon, while not paying dividends, has significant growth in e-commerce, cloud computing, and advertising, with total revenue rising 11% to $638 billion. The choice between the two depends on investment goals: Walmart for stability and dividends, or Amazon for growth in tech and advertising.</p>

- The article compares Walmart and Amazon as investment options, highlighting their strengths and market positions.  
- Walmart's stock has risen 44% over the past year, driven by strong sales, earnings growth, and a recession-proof grocery market presence, while Amazon excels in e-commerce, cloud computing, and advertising, with significant revenue growth.  
- The choice between the two depends on investor goals, with Walmart being ideal for those seeking stability and dividends, and Amazon appealing to those focused on growth in technology and advertising sectors.

Best Stock to Buy Right Now: Walmart vs. Amazon