Analyze and compare

Amazon.com and Walmart

Amazon.com, Inc. $($AMZN$)$ is one of the largest Internet retailers in the world. Walmart Inc. $($WMT$)$ is the largest retailer in the United States.

Amazon and Walmart compete in similar markets; however, Walmart sells through both traditional retail stores and the Internet, while Amazon

sells only through the Internet. Earnings and common stock outstanding information was obtained from recent financial statements for both

companies as follows $($in millions$)$:

a$.$ Determine the earnings per share for each company. Neither company paid preferred stock dividends. Round your answers to two

decimal places.

Amazon

Walmart

b$.$ Which company appears more profitable from an earnings$-$per$-$share perspective?

c$.$ The market price of Amazon common stock was $$1,847$ per share at a time when Walmart's was $$119$ per share. How would you explain

this difference in market price given the earnings per share computed in $($a$)$ for both companies?