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Amazon has undoubtedly been one of the best shares to own over the last decade. However, there are FTSE 100 stocks that have outdone the US tech titan. Here are two of them.
JD Sports Fashion
Over the last decade, the share price of JD Sports (LSE:JD) has risen 1,499%. Amazon stock, meanwhile, has ‘only’ increased 842%.
This means a £10k investment in JD shares 10 years ago would now be worth around £160k! And there would also have been dividends along the way.
Why has the stock risen so much?
Benefiting from societal change
First and foremost, JD Sports is known for its huge selection of trainers. And across the last couple of decades, wearing trainers has become socially acceptable in places where it didn’t used to be.
For example, most pubs and many nightclubs at the weekend now admit people in casual footwear. It’s acceptable in offices too. This didn’t used to be the case.
In fact, when I look at old film footage of the streets of London (or elsewhere), nearly everyone is formally dressed. Nowadays though, sportswear in the street has become the norm, benefiting the likes of JD Sports.
Spectacular growth
When a stock rises dramatically over many years, it’s usually linked to surging sales and profits. And that’s been the case here.
| Year | FY2013 | FY2023 |
| Stores | 822 | 3,403 |
| Revenue | £1.2bn | £10.1bn |
| Pre-tax profit | £60m | £441m |
JD Sports now operates in 38 countries and plans to open as many as 1,750 stores over the next five years. Still-new CEO Régis Schultz intends to make the company an athletic leisurewear “powerhouse“.
Currently, the stock has a P/E ratio of only 13.7, which I consider an attractive valuation.
However, one potential risk here is that big brands such as Nike are now prioritising direct-to-consumer strategies, mainly through their apps. They make larger profits doing so and this could one day lead to retailers such as JD Sports being cut out as the ‘middleman’.
That said, the firm did strengthen its existing partnership with Nike last year. But this looming threat is why I’m not a shareholder myself.
Ashtead
The second FTSE 100 stock to have outperformed Amazon over the last 10 years is Ashtead (LSE:AHT).
The share price is up over 700% and, including dividends, the total return exceeds that of the US e-commerce and cloud giant. Amazon, by the way, has never paid a dividend.
For many years now, Ashtead has relentlessly hoovered up smaller competitors in the UK and North America. In the process, it has become the UK’s largest plant hire firm and the second largest in the US.
It has profited from the move towards companies renting rather than purchasing construction and industrial equipment. This change has been more dramatic in North America, its largest market.
Like JD Sports, revenue and profits have soared since 2013.
One thing worth highlighting is Ashtead’s exposure to the cyclicality of the construction industry, which presents risks if the US economy enters a recession.
However, the company is currently benefiting from the massive infrastructure spending in the States, where multiple mega-projects are under way.
The stock is trading on a P/E ratio of 18, which is higher than the wider FTSE 100. Yet that didn’t stop me from topping up my holding just last month.
