Apple vs Amazon
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KIRA’s take AI analyst
I put Apple and Amazon side by side, using each one’s latest annual report. Here is what stands out:
- Amazon is the larger business, with $716.9B of revenue in fiscal 2025 against $416.2B for Apple, about 1.7 times as much.
- Amazon grew revenue faster (12.4%, against 6.4%).
- Apple kept more of each dollar of sales as operating profit (32.0% operating margin, against 11.2%).
- Apple turned more of its sales into free cash flow (23.7% FCF margin, against 1.1%).
- Apple earned a higher return on the capital invested in it (102.9%, against 20.6%).
- Investors pay more for each dollar of Apple’s earnings: a P/E of 39.5x against 20.0x for Amazon.
Who comes out ahead
Of the 11 measures where higher (or lower) is clearly better, how many each company leads.
Apple
AAPL
7/11
Operating marginNet marginFCF marginReturn on capitalReturn on equityPiotroski F-scoreShare count change
Amazon
AMZN
4/11
Revenue growth5-year growthGross marginNet debt / EBITDA
Side by side
Best in the row
| Latest fiscal year | AAPL FY25 | AMZN FY25 |
|---|---|---|
| Size | ||
| Market cap | $5.06T | $2.72T |
| Revenue | $416.2B | $716.9B |
| Free cash flow | $98.8B | $7.7B |
| Net income | $112.0B | $77.7B |
| Growth | ||
| Revenue growth | 6.4% | 12.4% |
| 5-year growth | 8.7% | 13.2% |
| Share count change | −2.6% | 1.0% |
| Profitability | ||
| Gross margin | 46.9% | 50.3% |
| Operating margin | 32.0% | 11.2% |
| Net margin | 26.9% | 10.8% |
| FCF margin | 23.7% | 1.1% |
| Return on capital | 102.9% | 20.6% |
| Return on equity | 171.4% | 22.3% |
| Balance sheet | ||
| Net debt | $45.2B | −$41.5B |
| Net debt / EBITDA | 0.3x | −0.3x |
| Dividends and buybacks | $106.1B | $0.0M |
| Valuation & quality | ||
| P/E | 39.5x | 20.0x |
| Piotroski F-score | 8 | 6 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.