Better Buy: Amazon vs. Dollar Tree

Amazon (NASDAQ: AMZN) is a perennial favorite that has produced outsized gains for shareholders due to its strong sales and profit growth. The stock price has appreciated by 494% over the last five years, five times the S&P 500's increase.

On the other hand, until recently Dollar Tree (NASDAQ: DLTR) has struggled with intensifying competition, rising tariffs from China that increased costs, and a Family Dollar business that has struggled since it was acquired in 2015. This is reflected in the share price's lagging 27% gain over the last five years.

While Amazon has created a lot of shareholder wealth over the years, Dollar Tree's results have only improved recently. When choosing between the two equity investments, is it better to shop for stock in the discount aisle or invest in a tried-and-true company?

Source Fool.com