AMZN vs BBY: Which Is the Better Buy in 2026?
Last updated August 2026
Short answer
AMZN and BBY are similarly sized, but BBY trades noticeably cheaper on forward earnings (12.18x vs 26.44x): the market is paying up for AMZN's profile and pricing BBY more conservatively, or for faster growth. Which you prefer comes down to the drivers you believe, and whether adding either over-concentrates what you already own.
AMZN vs BBY: the tie-breaker metrics
Same yardstick, side by side (as of August 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.
| Metric | AMZN | BBY | What it tells you |
|---|---|---|---|
| Forward P/E | 26.44 | 12.18 | Valuation on next year's expected earnings, the same yardstick for both. Lower is cheaper for that growth; higher means the market is paying up. |
| Trailing P/E | 21.83 | 15.97 | Valuation on the last 12 months. A big drop from trailing to forward means the market expects earnings to jump, so more growth is already in the price. |
| Beta | 1.46 | 1.33 | Volatility vs the market. Above 1 swings harder than the index; below 1 is steadier. Higher beta means bigger drawdowns to hold through. |
| Price vs 52-week range | 92% of range | 86% of range | Where today's price sits between the 52-week low and high. Near the high is momentum with less margin of safety; near the low is out of favor or a discount, depending on why. |
| Price / book | 6.61 | 5.90 | How much you pay over book value. Very high can signal an asset-light, high-return business or a rich price. |
Reading it: BBY is the cheaper of the two on forward earnings, but cheaper is not the same as better. Pair the valuation with growth (how far the forward P/E sits below the trailing P/E) and risk (beta) before you decide.
Before you buy: how AMZN and BBY affect your concentration
The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. AMZN and BBY share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.
This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined AMZN and BBY exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.
What does Amazon (AMZN) do?
Amazon is one of the largest companies in the world, operating across three major business lines. Amazon Web Services (AWS) is the dominant global cloud computing provider, generating around $110 billion in annual revenue and most of the company's operating income. The North America and International e-commerce segments include the Amazon online marketplace, Prime membership, and third-party seller services. Advertising has grown into the third-largest digital ad business in the world (after Google and Meta).
What does Best Buy (BBY) do?
Best Buy Co., Inc. is the largest specialty retailer of consumer electronics in the United States, selling computers, TVs, mobile phones, gaming hardware, appliances, and smart-home devices through roughly a thousand large-format stores and its e-commerce site. A growing share of profit comes from services rather than just product margin: Geek Squad installation and repair, the My Best Buy membership and paid-tier programs, vendor marketing through its Best Buy Ads retail-media network, and a health-care services push aimed at aging-at-home consumers. The model leans on high-volume product sales at thin gross margins, supplemented by higher-margin services, memberships, and warranty attach.
AMZN vs BBY: how do they differ?
Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.
- AMZN drivers: AWS as the AI infrastructure backbone; Retail margin expansion.
- BBY drivers: AI-PC and electronics replacement cycle; Services, membership, and retail media.
Which fits which kind of investor
A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: Hyperscaler AI capex is concentrated; if model training demand cools, AWS growth slows. For BBY, electronics are discretionary, so Best Buy's results swing with consumer confidence, housing turnover, and the broader economy, and a soft consumer can quickly stall comparable sales.
AMZN or BBY: which should you pick?
AMZN vs BBY: the full fundamentals
AMZN. Amazon's headline P/E reflects the aggregate of low-margin retail and high-margin AWS/advertising. The valuation premium is paid for AWS specifically; retail is essentially valued near cost. P/E of 40x is elevated versus the S&P 500 average (~22x), supported by AWS growth re-accelerating.
BBY. Figures are approximate and tied to the asOf date; verify current numbers before acting. Best Buy reported Q1 fiscal 2027 (quarter ended May 2, 2026) with comparable sales up about 2% and reiterated full-year guidance of roughly $41.2B to $42.1B in revenue, a 4.3% to 4.4% adjusted operating-income rate, and adjusted diluted EPS of about $6.30 to $6.60. The annual dividend is around ~$3.84 per share, and the company has noted a planned CEO transition as a governance watch item.
Headline figures (approximate, early 2026): AMZN shows revenue (ttm) ~$650 billion, operating margin ~10% (AWS materially higher; retail much lower), net income (ttm) ~$60 billion, eps (ttm) ~$5.50; BBY shows revenue (fy27 guidance / ttm) ~$41.2B to $42.1B, comparable sales (q1 fy27) ~+2.0%, adjusted operating margin ~4.1% (FY27 guide ~4.3% to 4.4%), dividend yield ~5% to 6%.
The bottom line: AMZN vs BBY
AMZN and BBY are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined AMZN and BBY exposure against your real portfolio. It is not an investment adviser.
Wondering how AMZN or BBY fits the portfolio you already own? Walnut is an AI investing app that connects your brokerage read-only and answers questions like that about your actual holdings: overlap, concentration, and how each position tracks the S&P 500. Compare the best AI portfolio analyzers or see the best AI investing apps in 2026.
Investing in Amazon with AI
Connect the broker you already use and ask Walnut's AI how AMZN fits what you actually hold: whether you own it already through a fund, what it would do to your concentration, and how it has tracked the S&P 500. Read-only by default, and you approve anything before it reaches your broker.
FAQ
What is the difference between AMZN and BBY?
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Amazon is one of the largest companies in the world, operating across three major business lines. Best Buy Co., Inc. They show up together because they share investment themes, but they are different businesses, so the better fit depends on which thesis you are expressing.
Is AMZN or BBY the better stock?
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Neither is universally better; they suit different views and risk levels. Walnut is informational, not investment advice. Compare what each does, the tie-breaker metrics above, and the risks, then decide which fits your thesis and what you already own.
Which is cheaper, AMZN or BBY?
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On forward P/E (as of August 2026), AMZN trades at 26.44x and BBY at 12.18x, so BBY is the cheaper of the two on next year's expected earnings. A lower multiple is not automatically the better buy: a richer valuation can be justified by faster growth, and a lower one can reflect real risk. Weigh the multiple against how fast each business is compounding.
Should you own both AMZN and BBY?
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Because they share themes, owning both concentrates you in that theme. That can be intentional (a focused bet) or accidental (less diversification than it looks). Walnut can show your combined exposure across both, and whether adding either over-concentrates you, before you buy.
What are the risks of AMZN vs BBY?
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AMZN: Hyperscaler AI capex is concentrated; if model training demand cools, AWS growth slows. Regulatory pressure on Amazon's third-party marketplace practices (FTC) remains active. BBY: Electronics are discretionary, so Best Buy's results swing with consumer confidence, housing turnover, and the broader economy, and a soft consumer can quickly stall comparable sales. The company competes directly with Amazon on price and selection and with Walmart, Target, and Costco on convenience, which pressures both volume and margin. Tariffs on imported electronics raise input costs that Best Buy cannot fully absorb or pass through without hurting demand. Underlying it all are thin retail margins (operating margin in the low single digits, around ~4%), which leaves little buffer when any of these pressures intensify.
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Walnut is informational, not investment advice. This page is descriptive and not a recommendation to buy or sell AMZN or BBY; figures are approximate and dated (as of August 2026). Verify current data before investing.