Amazon (NASDAQ: AMZN) and Dollar Tree (NASDAQ: DLTR) take different approaches to reach customers looking for bargains. Amazon targets customers looking for a wide array of merchandise online. Conversely, Dollar Tree is an ultra-discounter offering items at low price points.
Nonetheless, cheapness is not always a priority for investors. They care about which retail stock will generate the most returns for them going forward. Let's see which retailer offers more profit potential under current conditions.
Although both companies are in the "discount" business, investors need to note the stark differences between the two retailers. Amazon helped pioneer online commerce, and it has grown to become the largest e-commerce entity, doing business on six continents primarily through this medium.
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Better Buy: Amazon vs. Dollar Tree