Amazon.com Inc (AMZN)vsThe Cheesecake Factory (CAKE)
AMZN
Amazon.com Inc
$274.48
+0.82%
CONSUMER CYCLICAL · Cap: $2.99T
CAKE
The Cheesecake Factory
$107.05
-0.24%
CONSUMER CYCLICAL · Cap: $5.04B
Smart Verdict
WallStSmart Research — data-driven comparison
Amazon.com Inc generates 19906% more annual revenue ($775.68B vs $3.88B). AMZN leads profitability with a 17.4% profit margin vs 4.6%. AMZN appears more attractively valued with a PEG of 1.46. AMZN earns a higher WallStSmart Score of 70/100 (B-).
AMZN
Strong Buy70
out of 100
Grade: B-
CAKE
Buy55
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-70.0%
Fair Value
$160.38
Current Price
$274.48
$114.10 premium
Margin of Safety
-0.4%
Fair Value
$61.32
Current Price
$107.05
$45.73 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Earnings expanding 242.3% YoY
Every $100 of equity generates 21 in profit
19.6% revenue growth
Every $100 of equity generates 36 in profit
Earnings expanding 23.7% YoY
Areas to Watch
Weak financial health signals
Negative free cash flow — burning cash
Expensive relative to growth rate
Moderate valuation
Trading at 11.6x book value
Grey zone — moderate risk
Comparative Analysis Report
WallStSmart ResearchBull Case : AMZN
The strongest argument for AMZN centers on Market Cap, EPS Growth, Return on Equity. Profitability is solid with margins at 17.4% and operating margin at 13.7%. Revenue growth of 19.6% demonstrates continued momentum.
Bull Case : CAKE
The strongest argument for CAKE centers on Return on Equity, EPS Growth.
Bear Case : AMZN
The primary concerns for AMZN are Piotroski F-Score, Free Cash Flow.
Bear Case : CAKE
The primary concerns for CAKE are PEG Ratio, P/E Ratio, Price/Book. Debt-to-equity of 4.66 is elevated, increasing financial risk. Thin 4.6% margins leave little buffer for downturns.
Key Dynamics to Monitor
AMZN profiles as a growth stock while CAKE is a value play — different risk/reward profiles.
AMZN carries more volatility with a beta of 1.45 — expect wider price swings.
AMZN is growing revenue faster at 19.6% — sustainability is the question.
CAKE generates stronger free cash flow (52M), providing more financial flexibility.
Bottom Line
AMZN scores higher overall (70/100 vs 55/100), backed by strong 17.4% margins and 19.6% revenue growth. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Amazon.com Inc
CONSUMER CYCLICAL · INTERNET RETAIL · USA
Amazon.com, Inc. is an American multinational technology company which focuses on e-commerce, cloud computing, digital streaming, and artificial intelligence. It is one of the Big Five companies in the U.S. information technology industry, along with Google, Apple, Microsoft, and Facebook. The company has been referred to as one of the most influential economic and cultural forces in the world, as well as the world's most valuable brand.
Visit Website →The Cheesecake Factory
CONSUMER CYCLICAL · RESTAURANTS · USA
Cheesecake Factory Incorporated operates restaurants. The company is headquartered in Calabasas, California.
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