Multinational technology giant Amazon (​​NASDAQ: AMZN) and global retail behemoth Walmart (NYSE: WMT) are competing to lead hybrid retail, blending digital and physical shopping. 

Amazon, founded in 1994, is a multinational technology giant with a diverse portfolio of businesses, including e-commerce, cloud computing and artificial intelligence. The company has revolutionised the way we live and shop. 

On the other hand, since opening its first Wal-mart Discount City store in 1962, Walmart now operates a chain of hypermarkets, discount department stores and grocery stores in the US and 23 other countries. 

Let’s compare these multinational giants to see how they stack up.

We also look at which stock gives you more value for your dollar.

Growth Story

Digital vs. Physical Revenue Streams

Amazon, the undisputed leader in e-commerce, has been gradually carving its way into the physical retail landscape. From experimenting with cashier-less Amazon Go stores to opening a beauty and personal care “parapharmacy” in Italy, Amazon is proving it can adapt to brick-and-mortar retail. A standout contributor to Amazon’s success is Amazon Web Services (AWS), which generates 17% of the company’s total 2024 sales.

On the flip side, Walmart — a giant in physical retail — has made significant strides in its e-commerce operations, ensuring its digital storefront competes effectively with Amazon. 

While Walmart’s online presence may not match Amazon in scale, it has expertly leveraged its vast network of physical stores for online order fulfillment.

Revenue Dynamics and Market Leadership

Amazon’s 2024 revenue increased 11% year on year to US$638 billion with North America segment sales increasing nearly 10% year on year to US$387 billion.

The bulk of its revenue comes from e-commerce sales from Amazon.com and other Amazon retailing platforms. 

For its fiscal year ending 31 Jan 2025, Walmart reported a revenue of US$681 billion, a 5.1% year-on-year increase.

For the fourth quarter of fiscal 2025, the retailer’s US e-commerce sales soared 20% year on year. 

Walmart relies on consistent revenue streams from its well-established physical store network and grocery leadership, which contributes over half of its total revenue. 

While it continues to scale its online operations, it has demonstrated the potential to match the scale and growth dynamics seen in Amazon’s digital ecosystem. 

Walmart’s ability to leverage its hybrid retail model remains a key strength, but Amazon’s relentless pursuit of innovation and wider global digital reach indicates it is catching up fast.

Both companies present compelling narratives, but Amazon’s growth trajectory in e-commerce and cloud services contrasts sharply with Walmart’s steady, essentials-driven approach. Investors must weigh innovation and potential versus reliability when considering these retail giants.

Geographic Expansion

Walmart has a strong presence in emerging markets like India and Mexico, where its scalable physical retail model shines. On the other hand, Amazon is focusing on urban centres with innovative store concepts, like its Milan beauty outlet, as well as leveraging its Whole Foods acquisition to strengthen its physical footprint.

New Business Ventures

Amazon’s foray into healthcare and fintech highlights its ambition to dominate industries beyond retail. AWS continues to outperform, and ventures into health insurance and drug delivery show serious promise. Similarly, Walmart has expanded via health clinics and financial services, solidifying its position as a grocery leader and innovating to stay at the forefront of customer needs.

Competitive Strengths

Investment Outlook

Growth Catalysts

Amazon’s global reach, AWS’ profitability, and its seamless integration of online and offline retail channels position it as a strong growth stock. 

Walmart boasts industry dominance in groceries, providing a dependable anchor during economic volatility.

Key Risks

Amazon faces the challenge of managing high operating expenses, which could compress margins during periods of slow e-commerce growth. 

Meanwhile, Walmart must juggle digitalising its retail offerings while competing in lower-margin categories like groceries.

Valuation Comparison

Price-to-earnings (P/E) ratio

When evaluating valuation metrics, the price-to-earnings (P/E) ratio offers a clear picture of how much investors are willing to pay for every dollar of earnings.

Amazon’s P/E ratio stood at 35.8 times as of 17 March 2025 and Walmart’s was 35.4 times. 

Both companies have roughly the same P/E ratios, which highlights how both companies, despite having different business models, command robust valuations. 

These valuations also reflect Amazon’s innovation-driven strategies and Walmart’s stability and hybrid retail expertise.

Return on Equity (ROE) 

Return on Equity can be used as an indicator of a company’s profitability and ability to generate returns on a shareholder’s equity. 

Amazon’s ROE came in at 20.7% for 2024 and Walmart’s 21.4% ROE for the fiscal year ending 31 Jan 2025 are both strong indicators of the company’s effective utilisation of its equity to drive growth and profitability. 

Free Cash Flow (FCF)

Amazon’s FCF for 2024 was US$32.2 billion and Walmart’s was US$12.7 billion. 

Get Smart: Which Stock Offers Better Value?

Amazon’s growth extends beyond retail, with its cloud service AWS driving profits while healthcare and financial services ventures create additional revenue opportunities.

Walmart leverages its vast store network while expanding digitally, maintaining its strength in everyday essentials and pursuing steady growth through healthcare services and emerging markets.

The choice between these stocks reflects different investment strategies.

Amazon targets aggressive growth through tech innovation and industry disruption

Walmart delivers consistent returns through stable retail operations and dividends

Growth-focused investors may prefer Amazon’s potential for higher returns across multiple sectors. Conservative investors might choose Walmart for its steady performance and reliable dividend payments, particularly during economic downturns.

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Disclosure: Joanna Sng of The Smart Investor owns shares of Amazon.