Financial Contrast: Amazon.com (NASDAQ:AMZN) versus Airborne Wireless Network (NASDAQ:ABWN)

Amazon.com (NASDAQ:AMZN) and Airborne Wireless Network (OTCMKTS:ABWN) are both retail/wholesale companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, valuation, profitability, risk, dividends, earnings and institutional ownership.

Earnings and Valuation

This table compares Amazon.com and Airborne Wireless Network’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Amazon.com $280.52 billion 5.64 $11.59 billion $23.01 137.27
Airborne Wireless Network N/A N/A -$76.68 million N/A N/A

Amazon.com has higher revenue and earnings than Airborne Wireless Network.

Risk and Volatility

Amazon.com has a beta of 1.35, suggesting that its stock price is 35% more volatile than the S&P 500. Comparatively, Airborne Wireless Network has a beta of 1.06, suggesting that its stock price is 6% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for Amazon.com and Airborne Wireless Network, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Amazon.com 0 3 48 0 2.94
Airborne Wireless Network 0 0 0 0 N/A

Amazon.com presently has a consensus target price of $3,440.56, indicating a potential upside of 8.92%. Given Amazon.com’s higher possible upside, analysts plainly believe Amazon.com is more favorable than Airborne Wireless Network.

Profitability

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

Net Margins Return on Equity Return on Assets
Amazon.com 4.10% 20.47% 5.83%
Airborne Wireless Network N/A N/A N/A

Institutional and Insider Ownership

57.3% of Amazon.com shares are owned by institutional investors. 16.1% of Amazon.com shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Amazon.com beats Airborne Wireless Network on 10 of the 10 factors compared between the two stocks.

About Amazon.com

Amazon.com, Inc. engages in the retail sale of consumer products and subscriptions in North America and internationally. The company operates through three segments: North America, International, and Amazon Web Services (AWS) segments. It sells merchandise and content purchased for resale from third-party sellers through physical stores and online stores. The company also manufactures and sells electronic devices, including Kindle e-readers, Fire tablets, Fire TVs, and Echo devices; provides Kindle Direct Publishing, an online service that allows independent authors and publishers to make their books available in the Kindle Store; and develops and produces media content. In addition, it offers programs that enable sellers to sell their products on its Websites, as well as their own branded Websites; and programs that allow authors, musicians, filmmakers, skill and app developers, and others to publish and sell content. Further, the company provides compute, storage, database, and other AWS services, as well as compute, storage, database offerings, fulfillment, publishing, digital content subscriptions, advertising, and co-branded credit card agreement services. Additionally, it offers Amazon Prime, a membership program, which provides free shipping of various items; access to streaming of movies and TV episodes; and other services. It serves consumers, sellers, developers, enterprises, and content creators. Amazon.com, Inc. has a strategic partnership with Volkswagen AG. The company was founded in 1994 and is headquartered in Seattle, Washington.

About Airborne Wireless Network

Airborne Wireless Network, a development stage company, focuses on developing, marketing, and licensing a fully-meshed high-speed broadband airborne wireless network by linking aircraft in flight. It focuses on developing Infinitus, a high-speed broadband airborne wireless network that would enable participating aircraft to act as an airborne repeater or router, sending and receiving broadband signals from one aircraft to another. It intends to sell broadband wireless bandwidth to the telecommunications companies and Internet service providers. The company was formerly known as Ample-Tee, Inc. and changed its name to Airborne Wireless Network in May 2016. Airborne Wireless Network was founded in 2011 and is headquartered in Simi Valley, California.

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