Better Buy: Amazon vs. Target

Amazon (NASDAQ: AMZN) and Target (NYSE: TGT) are two of my favorite retail stocks, so making a choice between them will be difficult. But I'm ready for the challenge.

Both companies have successfully grown and adapted to become big winners in the changing world of retail. Amazon has diversified beyond online sales of general merchandise into grocery and convenience stores, delivery services, online streaming of video and audio as well as cloud computing services. The company has used technology and leveraged services to improve its offerings to customers. For some customers of its membership program, Prime, Amazon offers delivery within two hours.

Target's business isn't as broad as Amazon's, but both do serve customers shopping for general merchandise and groceries. Online sales have been growing by double digits at Target, and like Amazon, the company has made efforts to streamline delivery to customers. Just this month, Target said it would buy Deliv, a company focused on last-mile delivery technology.