Walmart vs Amazon: Business Model & Financial Comparison 2026
Walmart · Consumer Defensive / Discount Stores·Amazon · Consumer Cyclical / Internet Retail
Financial Comparison
| Metric | WMTWalmart | AMZNAmazon |
|---|---|---|
| Market Cap | $987.04B | $2.29T |
| Revenue (TTM) | $713.16B | $716.92B |
| Revenue Growth | 5.6% | 13.6% |
| Gross Margin | 24.9% | 50.3% |
| Operating Margin | 4.6% | 10.5% |
| Net Margin | 3.1% | 10.8% |
| Return on Equity | 21.8% | 22.3% |
| P/E (Trailing) | 45.2x | 30.6x |
| P/E (Forward) | 37.6x | 22.8x |
| Free Cash Flow | $7.77B | $23.79B |
| Cash | $10.73B | $123.03B |
| Total Debt | $67.09B | $178.55B |
Data sourced from Yahoo Finance. Green highlights indicate better performance for that metric. Use the interactive tool for real-time data.
Business Model Comparison
Walmart
Walmart stands as the world's largest retailer by revenue. Generating $713.16 billion in annual revenue (growing 5.6% year-over-year) and carrying a market capitalization of $983.13 billion, the company has cemented its position as a foundational player in the global Discount Stores landscape. Under the leadership of Doug McMillon, Walmart continues to execute on a multi-year strategic vision that balances growth investment with shareholder retur…
Full Walmart analysis →Amazon
Amazon stands as the world's largest e-commerce and cloud computing company. Generating $716.92 billion in annual revenue (growing 13.6% year-over-year) and carrying a market capitalization of $2.35 trillion, the company has cemented its position as a foundational player in the global Internet Retail landscape. Under the leadership of Andy Jassy, Amazon continues to execute on a multi-year strategic vision that balances growth investment with sha…
Full Amazon analysis →SWOT Analysis Comparison
Strengths
Walmart
- With a market capitalization of $983.13B, Walmart is one of the largest companies in its sector, providing the scale advantages of brand recognition, supplier leverage, and capital access that smaller
- Walmart maintains a gross margin of 24.9% and operating margin of 4.6%, demonstrating consistent operational execution and cost discipline in a competitive market.
- A return on equity of 21.8% demonstrates that Walmart generates strong returns from shareholder capital, a hallmark of companies with durable competitive advantages.
Amazon
- With a market capitalization of $2.35T, Amazon is one of the largest companies in its sector, providing the scale advantages of brand recognition, supplier leverage, and capital access that smaller co
- Amazon's gross margin of 50.3% is well above industry averages, reflecting pricing power, operational efficiency, or a high-value product mix. The operating margin of 10.5% demonstrates disciplined co
- Revenue grew 13.6% year-over-year to $716.92B, indicating strong demand for Amazon's products and services and outperformance relative to many industry peers.
Weaknesses
Walmart
- Walmart's debt-to-equity ratio of 63.2 indicates meaningful financial leverage. Total debt stands at $67.09B against $10.73B in cash and equivalents.
- A net profit margin of 3.1% leaves limited buffer against revenue fluctuations or cost increases. Any significant market downturn could quickly pressure profitability.
- With 2,100,000 employees globally, Walmart faces inherent challenges in agility, decision-making speed, and maintaining a consistent culture across geographies — advantages that smaller, nimbler compe
Amazon
- With 1,576,000 employees globally, Amazon faces inherent challenges in agility, decision-making speed, and maintaining a consistent culture across geographies — advantages that smaller, nimbler compet
- Core retail operates near breakeven — AWS and advertising subsidize the e-commerce business
- Labor costs and warehouse expansion create ongoing capital intensity
Opportunities
Walmart
- Walmart operates in the Discount Stores segment of the broader Consumer Defensive sector, which represents a $12 trillion global consumer staples market. Even modest share gains in this environment tr
- Emerging markets — particularly India (1.4B people, rapidly growing middle class), Southeast Asia (700M people), and Sub-Saharan Africa — represent significant untapped addressable markets for Walmart
- With $10.73B in cash and strong free cash flow generation, Walmart is well-positioned to pursue strategic acquisitions that expand its capabilities, customer base, or geographic reach.
Amazon
- Amazon operates in the Internet Retail segment of the broader Consumer Cyclical sector, which represents a $28 trillion global consumer spending market. Even modest share gains in this environment tra
- Emerging markets — particularly India (1.4B people, rapidly growing middle class), Southeast Asia (700M people), and Sub-Saharan Africa — represent significant untapped addressable markets for Amazon'
- With $123.03B in cash and strong free cash flow generation, Amazon is well-positioned to pursue strategic acquisitions that expand its capabilities, customer base, or geographic reach.
Threats
Walmart
- Global economic slowdowns, inflation, or rising interest rates can reduce consumer and enterprise spending. Walmart's revenue is not fully insulated from macroeconomic cycles, and a recession scenario
- Increasing government regulation — particularly data privacy laws (GDPR, CCPA), antitrust enforcement, and trade restrictions — poses compliance costs and potential restrictions on Walmart's business
- Competition for skilled technology, engineering, and management talent remains intense. High employee turnover or inability to attract top talent could slow innovation and execution — particularly cri
Amazon
- Global economic slowdowns, inflation, or rising interest rates can reduce consumer and enterprise spending. Amazon's revenue is not fully insulated from macroeconomic cycles, and a recession scenario
- Increasing government regulation — particularly data privacy laws (GDPR, CCPA), antitrust enforcement, and trade restrictions — poses compliance costs and potential restrictions on Amazon's business m
- Competition for skilled technology, engineering, and management talent remains intense. High employee turnover or inability to attract top talent could slow innovation and execution — particularly cri
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Open Comparison ToolWalmart vs Amazon: FAQ
- Is Walmart bigger than Amazon?
- By market capitalization, Amazon is larger at $2.29T vs Walmart's $987.04B.
- Which has better profit margins — Walmart or Amazon?
- Amazon has higher net profit margins (10.8%) compared to Walmart (3.1%). Gross and operating margins are compared in the table above.
- What sectors do Walmart and Amazon operate in?
- Walmart operates in the Consumer Defensive sector (Discount Stores). Amazon operates in the Consumer Cyclical sector (Internet Retail).
- How does Walmart's revenue compare to Amazon's?
- Walmart generates $713.16B in annual revenue (TTM) while Amazon generates $716.92B. Amazon is the larger company by revenue as of 2026.