Amazon vs e.l.f. Beauty: Which Stock is a Better Investment?

Two consumer growth stocks that are worth considering for investment in 2026 are Amazon.com (AMZN) and e.l.f. Beauty (ELF). Both companies have disrupted their respective industries with digital-first strategies and massive scale.

Amazon operates a vast commerce and technology empire, serving consumers, sellers, and enterprises through its online marketplace and Amazon Web Services (AWS). The company generates revenue from subscription services like Amazon Prime and third-party seller services. Its advertising business has become a significant income contributor, helping the company monetize its high volume of web traffic.

In fiscal 2025, Amazon's revenue reached $716.9 billion, representing a growth rate of 12.4% compared to the prior year. The company achieved a net margin of 10.8%, demonstrating its ability to maintain profitability despite investing heavily in logistics and AWS cloud segments.

e.l.f. Beauty specializes in inclusive and affordable cosmetics, distributing its products through major retail channels and direct-to-consumer platforms. In its latest annual report, filed for the period ended March 31, 2026, the company identified Target (TGT), Walmart (WMT), and Amazon among its largest retail customers.

While e.l.f. Beauty is growing rapidly, with revenue reaching $1.6 billion in fiscal 2026, representing a growth rate of 24.6% year over year, its net income was only $26.3 million, resulting in a net margin of 1.6%. The company faces high concentration risk regarding its retail customers and intense competition from larger rivals.

Amazon appears more reasonably priced based on future earnings estimates, with a forward P/E ratio of 20.7x compared to e.l.f. Beauty's 29.3x. Despite the soaring share price, Amazon's valuation remains attractive, as evidenced by its lower forward P/E ratio.