Ameriprise Financial, Inc. (AMP) vs Amazon.com, Inc. (AMZN): Which Is the Better Buy in 2026?
As of 2026-08-03, AMP is undervalued at $546, with a DCF intrinsic value of $1123 and a margin of safety of 51%. AMZN is overvalued at $272, with an intrinsic value of $99 and a margin of safety of -176%. Of the two, AMP has the wider margin of safety.
Rewards
- ★Ameriprise Financial, Inc. scores 99/100 on the Economic Moat Score (Wide Moat), with revenue predictability as the strongest competitive dimension.
- ★Free cash flow has grown at a 24.5% CAGR over the past 4 years, demonstrating strong earnings power growth.
- ★Return on equity has consistently exceeded 20% over 4 years, indicating efficient use of shareholder capital.
- ★Each dollar of retained earnings has created $5.34 of earning power — management is an exceptional capital allocator.
- ★Trailing P/E of 21.8x is 46% below the historical average of 40.6x — potentially undervalued relative to its own history.
- ★Altman Z-Score of 5.30 indicates very low bankruptcy risk — the company is firmly in the safe zone.
Risks
- ⚠Altman Z-Score of 0.45 places the company in the distress zone — financial patterns resemble those of companies that experienced bankruptcy.
- ⚠Insiders have sold $11.6M worth of stock in the past 3 months — significant insider liquidation.
- ⚠FCF yield of 0.3% is below 3%, meaning the market is pricing in substantial future growth to justify the current price.
- ⚠9 insider sales totaling $20.3M with no purchases in the past 3 months — insiders are reducing their exposure.
Key Valuation Metrics
Learn more →Historical Fundamentals
Learn more →Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.
Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.
Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.
$1 Retained Earnings Test
Learn more →> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
Discounted Cash Flow (DCF) Analysis
Learn more →Reverse DCF — Market-Implied Growth
Learn more →Requires positive FCF to compute implied growth rate.
What growth rate is the market pricing in at $272?
The market implies +16.9% Owner Earnings growth, below historical trends — potential opportunity.
Standard FCF implies a more demanding +50.5%, reflecting heavy growth investment expected to generate future returns.
Economic Moat Score
Learn more →Wide moat driven primarily by revenue predictability. Margin Stability is the area most vulnerable to competitive pressure.
Narrow moat with revenue predictability as the key competitive advantage. Improving margin stability would strengthen the moat.
Forensic Accounting
Learn more →M-Score Trend
M-Score Trend
Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.
Ownership Breakdown
Learn more →High insider ownership aligns management incentives with shareholders. Institutional concentration can indicate smart-money conviction but also crowding risk.
Insider Buying Activity
Learn more →Open market purchases · includes direct & indirect ownership · excludes option exercises.
Insider Selling Activity
Learn more →Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives.
🎭 Mr. Market's Mood
Learn more →"Market is optimistic — be cautious and ensure you have a margin of safety"
"Market is optimistic — be cautious and ensure you have a margin of safety"
Composite sentiment score based on market signals. Inspired by Buffett’s "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.
⚖️ Buffett Signal
Learn more →The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.
The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.
Frequently Asked Questions: AMP vs AMZN
Is Ameriprise Financial, Inc. or Amazon.com, Inc. more undervalued in 2026?▼
Based on our discounted cash flow model, AMP trades at a 51.4% margin of safety (intrinsic value $1123 vs. price $546), compared to AMZN's -175.5% margin of safety (intrinsic $99 vs. $272).
Which stock has a wider economic moat, Ameriprise Financial, Inc. or Amazon.com, Inc.?▼
AMP scores 99/100 (Wide moat), while AMZN scores 51/100 (Narrow moat). The moat score measures competitive advantage durability across ROIC consistency, margin stability, revenue predictability, and reinvestment efficiency.
Is Ameriprise Financial, Inc. in financial distress?▼
AMP's Altman Z-Score of 0.5 places it in the Distress zone, signaling elevated bankruptcy risk. AMZN scores 5.3 (Safe zone). The Altman Z-Score is a five-factor model that predicts insolvency within two years; scores below 1.81 indicate significant distress.
Which stock has higher return on invested capital, Ameriprise Financial, Inc. or Amazon.com, Inc.?▼
AMP earns 46.3% ROIC versus AMZN's 10.4%. A higher ROIC means the company generates more profit per dollar of capital employed, a hallmark of durable competitive advantage in Buffett-style analysis.