Apple (AAPL 3.25%) and Amazon (AMZN 0.23%) have both been wonderful companies for investors to have owned. In the past decade, the consumer electronics giant’s shares are up 723% (as of Sept. 17), while the e-commerce juggernaut’s shares have climbed an even better 777%.

These are two of the most valuable enterprises on Earth. But which of these dominant tech stocks is the best one to buy today?

Image source: Getty Images.

Apple’s strong brand supports huge profits

Apple is a phenomenal company. I don’t think there are many people who would argue with that statement. There are three key reasons why investors should think this way.

The first reason Apple is a great business is because of its powerful brand, which resonates so well with consumers across the globe. Apple’s products and services are extremely popular and user-friendly, supported by the company’s successful history of innovation that includes adding new features and devices to the mix. This also aids ongoing pricing power.

Apple’s ability to seamlessly blend hardware and software is what creates its robust ecosystem. This is another reason to appreciate the business. The ecosystem is what essentially locks users in, discouraging them from switching to competing products and services. This helps Apple generate recurring revenue from its suite of services.

Apple doesn’t struggle when it comes to profitability. It generated net income of $23.4 billion just in the last quarter (Q3 2025 ended June 28). And in the past decade, the company’s net profit margin has averaged a superb 23%. This gives the company the financial horsepower to return lots of capital to shareholders, mainly through stock buybacks that totaled $21 billion just in the last fiscal quarter. Apple’s financial strength is a third reason investors will like this business.

AWS is Amazon’s most promising segment

Amazon is also a high-quality business. I believe there are also three reasons that support this perspective.

For starters, Amazon operates in multiple growth markets. It not only benefits from the popularity of online shopping, the area that it’s a dominant player in, but it’s also involved in streaming entertainment and digital advertising. Many investors might not realize that Amazon generated $15.7 billion just in ad revenue in Q2, up 22% year over year. This introduces a high-margin revenue stream.

Another growth engine, which is another reason to admire this business, is Amazon Web Services (AWS). Cloud computing has been a major growth industry in the past decade, and it should continue going forward. This is especially true as companies not only move IT spending off-premises but start to invest significant resources into developing artificial intelligence. AWS generated more than half of Amazon’s entire operating income last quarter, a share that will probably rise in the future.

The third reason why Amazon is a wonderful business is because it’s proving that it can scale up in a profitable manner. Credit goes to running the business with a focus on operational efficiencies, which is exactly what CEO Andy Jassy has done in recent years. Amazon’s Q2 net income was 250% higher than in the same period five years ago.

The best opportunity

Apple and Amazon are two of the best businesses on the face of the planet. Companies obviously can’t get their market caps measured in the trillions of dollars without doing some things right. But which is the better stock to buy right now?

I believe that title goes to Amazon. It has better growth prospects, as it operates in numerous industries that have meaningful expansionary potential over the long term. Slower growth, particularly in the retail operations, can be offset by the gains with AWS and digital advertising. Amazon might also enter new markets in the future.

Plus, its valuation is reasonable at a forward price-to-earnings ratio of 30.1. Amazon is positioned better to produce a higher return over the next five years.