Amazon vs. Walmart: This Isn't Even Close
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By Marc Guberti – Apr 18, 2026 at 2:02PM ESTKey PointsAmazon has a higher long-term revenue compound annual growth rate than Walmart.The tech conglomerate is tapping into multiple high-growth industries like cloud computing, online advertising, and AI chips, while Walmart's growth opportunities are more limited.Amazon boasts a lower P/E ratio than Walmart, offering a higher margin of safety. Amazon (AMZN +0.26%) and Walmart (WMT +2.15%) are the two largest retailers in the world, and their stocks have delivered exceptional returns for long-term investors. Both stocks have outperformed the S&P 500 year to date, but picking a winner between these two stocks is surprisingly easy. While Amazon is the leading online retailer, Walmart's vast network of physical locations makes it the top brick-and-mortar retailer. Here's what investors should know when comparing these two stocks. Image source: Getty Images. Amazon boasts higher revenue growth and exposure to more opportunities Amazon wins when it comes to revenue growth, with a 12.7% compound annual growth rate (CAGR) over the past three years. Walmart only has a 5.1% CAGR over the same stretch. Amazon also leads in 5-year, 10-year, 15-year, and 20-year revenue CAGRs. Both companies have also seen their revenue growth rates accelerate over the past five years. ExpandNASDAQ: AMZNAmazonToday's Change(0.26%) $0.66Current Price$250.36Key Data PointsMarket Cap$2.7TDay's Range$250.11 - $256.1952wk Range$165.28 - $258.60Volume2.3MAvg Vol52MGross Margin50.29% These revenue growth trends show that Amazon has been gaining market share at a faster rate, and this trend continued in the most recent quarter. Amazon's Q4 results notched 14% year-over-year revenue growth, with more than 20% growth in its cloud computing (AWS) and online advertising segments. Amazon's custom AI chips also produce more than $10 billion in annual revenue at this point. Total company sales were $213.4 billion in the fourth quarter, Meanwhile, Walmart delivered 5.6% year-over-year revenue growth in Q4 of its fiscal 2026, which ended on Jan. 31. High growth rates from e-commerce and online advertising do not override the fact that almost all of Walmart's revenue comes from its physical locations. Amazon has done a much better job of diversifying over the years, and it shows in its financial results. The Amazon argument gets stronger when looking at valuation and profits Amazon's higher revenue growth also comes with better profit margins than Walmart. While the physical retailer has done an excellent job of improving margins with online ads and e-commerce, its margins are still lower than Amazon's. ExpandNASDAQ: WMTWalmartToday's Change(2.15%) $2.68Current Price$127.50Key Data PointsMarket Cap$1.0TDay's Range$123.37 - $127.5752wk Range$91.34 - $134.69Volume25MAvg Vol23MGross Margin23.41%Dividend Yield0.75% To top it all off, Amazon has a more attractive valuation than Walmart. The e-commerce leader has a 34.7 price-to-earings (P/E) ratio compared to Walmart's 45.3 P/E. Amazon's lower valuation comes with faster revenue and net income growth, plus more long-term catalysts. Walmart may be more suitable for retirees with less time available to spend in the market and a bigger need for non-salary income, since it is less volatile than the S&P 500 and pays a dividend, but a yield below 1% isn't a game changer. Walmart has outperformed Amazon stock over the past five years by a wide margin, but a reversal seems in order. Amazon is the winner in this match-up. Read NextApr 18, 2026 •By Neil PatelTariffs, Volatility, and Amazon: Is It Still a Long-Term Buy?Apr 18, 2026 •By Keithen DruryThese 2 Genius AI Stocks Are Your Best Way to Own Anthropic Before Its IPOApr 17, 2026 •By Matt Frankel, CFPS&P 500 Explained: How the Index Works and How to Invest in ItApr 17, 2026 •By Keithen DruryPrediction: These Will Be the Next 3 Stocks to Join the $3 Trillion ClubApr 17, 2026 •By Matt Frankel, CFPBest Stocks to Buy Now: Our Buy-and-Hold Picks for April 2026Apr 17, 2026 •By Geoffrey SeilerIs Amazon Actually a Once-in-a-Decade Bargain Right Now? Here's What the Numbers Say.About the AuthorMarc Guberti is a Certified Personal Finance Counselor and has been a contributing Motley Fool stock market analyst since 2025. He has written for several finance publications. Marc graduated from Fordham University with a finance degree. He is an avid marathon runner who aims to complete more than 100 marathons in his lifetime. His fastest marathon time is 2:40.TMFmarcgubertiStocks MentionedAmazonNASDAQ: AMZN$250.36(+0.26%)+$0.66WalmartNASDAQ: WMT$127.50(+2.15%)+$2.68*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.