Better Buy: Amazon vs. Target
By almost any measure, both Amazon (NASDAQ: AMZN) and Target (NYSE: TGT) are healthy companies. Amazon of course dominates North America's e-commerce market, while scrappy Target continues to prove it can keep bigger rival Walmart (NYSE: WMT) on its toes. Both stocks are solid performers as well.
But if there's only room for one of these two names in your portfolio right now, it's got to be Amazon. Target is moving into the next era of retailing without the same financial footing as its rivals, and that's going to matter.
Don't misread the message. This isn't necessarily a call to sell any Target shares you may own, particularly if doing so creates an ill-timed tax bill. The fact is, however, that Amazon is able to make investments in its own growth that Target simply can't.
Source Fool.com
