Better Stock Today Challenge: Citigroup vs. Amazon.com
In the spirit of World Cup competition, we're holding our own tournament in search of the Better Stock Today. We're pitting 32 companies against each other and you, the reader, will determine the winner.
Citigroup takes on Amazon.com for this first round-robin match-up in our search for the better stock today.
Financials analyst Tyler Riggs believes that the biggest reason Citigroup is the strongest buy in the field is because Wall Street has got it all wrong. Instead of following the herd and focusing on just two numbers -- top-line revenues and bottom-line earnings -- savvy investors are reading between the lines on this company and finding an incredibly efficient core banking operation that's thriving. Add Citigroup's unmatched international reach to the equation, and you've got a huge opportunity to get in before Wall Street realizes what they're missing.
Fool tech analyst Nathan Hamilton believes the No. 1 reason Amazon.com should win this match is Amazon Prime. Prime is Amazon's subscription-based offering that aligns well with the company's strategy where up-front profitability is sacrificed to create a user base that is profitable and sticky in the long-term.
According to a study conducted by Consumer Intelligence Research Partners in 2013, a Prime member spends $1,340 annually, roughly double the amount a non-Prime member spends. As a result, free cash flow -- CEO Jeff Bezos' preferred gauge of fundamental performance -- benefits as the company generates a stable source of cash to reinvest in Amazon's R&D-heavy initiatives. Investors will want to keep an eye on Prime, as it will be a key driver of shareholder value.
Warren Buffett vs. His Worst Nightmare
Warren Buffett just called this emerging technology a "real threat" to his biggest cash-cow. While Buffett shakes in his billionaire-boots, only a few investors are embracing this new market which experts say will be worth over $2 trillion. It won't be long before everyone on Wall Street wises up, that's why The Motley Fool is releasing this timely investor alert. Click here to learn more about what's keeping Buffett up at night and the one public company we're calling the "brains behind" the technology.
Vote here to determine the winner of this match and sound off in the comments box below. Check back to Fool.com to see who advances in the tournament.
The article Better Stock Today Challenge: Citigroup vs. Amazon.com originally appeared on Fool.com.Nathan Hamilton has no position in any stocks mentioned. Tyler Riggs owns shares of Amazon.com. The Motley Fool recommends Amazon.com and owns shares of Amazon.com and Citigroup. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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