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Amazon or Wal-Mart: Which is the better buy?

Lawrence Lewitinn
Talking Numbers

They are two giants in retail and, in their own way, are wreaking havoc among their competitors.

Of course we're talking about Amazon and Wal-Mart.

When Toys "R" Us announced that its sales declined 7% and it lost over $1 billion last year, many looked to Wal-Mart and Amazon as one of the leading causes for the decline. Once the nation's top retailer, Toys "R" Us was once Amazon's exclusive toy-seller. After a bitter dispute, Toys "R" Us now competes with Amazon online. Meanwhile, Wal-Mart is now the nation's largest toy seller.

(Read: After-hours buzz: Microsoft, Amazon.com & More)

With Wal-Mart and Amazon now two of the biggest retail titans, which one is the better buy for investors?

"It's a stark choice because they're not very similar, really even though they're both in the retailing realm," says Steve Cortes, founder of Veracruz TJM. "Amazon is like a race car, it's like a Ferrari. And Wal-Mart, basically, is a very dependable station wagon. Right now, though, I think boring is beautiful and I prefer Wal-Mart."

Cortes sees recent trouble for momentum stocks as big reason investors should bet on Wal-Mart over Amazon.

"For the near-term, momentum stocks are trading incredibly poorly, particularly in recent days… Facebook, Twitter, names like that," says Cortes. "Amazon tends to trade with that crowd."

Amazon is down 6% so far this month, though Wal-Mart is up 2%.

"For the first time in a long time, Wal-Mart is outperforming Amazon," says Cortes. "Boring is beautiful here. Go with stability. Forget about the race car and go with the dependable station wagon for a soccer mom and that's Wal-Mart."

(Read: Wal-Mart sues Visa for $5 billion over card swipe fees)

Steven Pytlar, Chief Equity Strategist at Prime Executions, sees the technicals as bullish on Wal-Mart for the near-term.

"The chart of Wal-Mart has potentially broken a downtrend that was in effect since October," says Pytlar, who sees a $76 support level in the share price with another 5% upside. "If we just simply take the normal technical projection of that little basing process we see there could it get us back to about $80 in the near-term."

To see the full discussion on Wal-Mart with Cortes on the fundamentals and Pytlar on the technicals, watch the video above.