Comparing Amazon.com With Industry Competitors In Broadline Retail Industry - Amazon.com (NASDAQ:AMZN)

In today's rapidly changing and fiercely competitive business landscape, it is vital for investors and industry enthusiasts to carefully evaluate companies. In this article, we will perform a comprehensive industry comparison, evaluating Amazon.com (NASDAQ:AMZN) against its key competitors in the Broadline Retail industry. By analyzing important financial metrics, market position, and growth prospects, we aim to provide valuable insights for investors and shed light on company's performance within the industry.

Amazon.com Background

Amazon is the leading online retailer and marketplace for third party sellers. Retail related revenue represents approximately 75% of total, followed by Amazon Web Services' cloud computing, storage, database, and other offerings (15%), advertising services (5% to 10%), and other the remainder. International segments constitute 25% to 30% of Amazon's non-AWS sales, led by Germany, the United Kingdom, and Japan.

Company	P/E	P/B	P/S	ROE	EBITDA (in billions)	Gross Profit (in billions)	Revenue Growth
Amazon.com Inc	51.82	8.89	3.31	4.98%	$25.31	$27.94	12.53%
PDD Holdings Inc	18.74	6.49	5.04	13.79%	$33.12	$54.12	130.66%
Alibaba Group Holding Ltd	18.18	1.39	1.54	0.33%	$19.81	$73.78	6.57%
MercadoLibre Inc	72.79	24.24	5.28	10.65%	$0.67	$2.02	36.0%
JD.com Inc	13.36	1.46	0.30	3.14%	$11.88	$39.77	7.04%
Coupang Inc	31.15	9.60	1.54	0.12%	$0.18	$1.93	22.63%
eBay Inc	10.66	4.27	2.77	6.91%	$0.68	$1.86	1.83%
Vipshop Holdings Ltd	7.50	1.68	0.57	6.22%	$2.97	$6.55	0.4%
Dillard's Inc	9.74	3.71	1.02	10.08%	$0.28	$0.71	-27.15%
MINISO Group Holding Ltd	21.28	5.32	3.47	6.39%	$0.78	$1.62	26.04%
Ollie's Bargain Outlet Holdings Inc	26.61	3.37	2.43	3.05%	$0.07	$0.21	10.82%
Macy's Inc	613.33	1.21	0.22	1.49%	$0.34	$2.05	-3.34%
Nordstrom Inc	11.48	4.15	0.23	-4.63%	$0.18	$1.13	-24.55%
Kohl's Corp	9.06	0.65	0.14	-0.7%	$0.23	$1.46	-43.22%
Savers Value Village Inc	34.43	5.48	1.43	-0.12%	$0.03	$0.2	2.46%
D-MARKET Electronic Services & Trading	310.83	6.96	0.65	-16.51%	$0.83	$4.26	30.58%
Average	80.61	5.33	1.78	2.68%	$4.8	$12.78	11.78%

By conducting an in-depth analysis of Amazon.com, we can identify the following trends:

The stock's Price to Earnings ratio of 51.82 is lower than the industry average by 0.64x, suggesting potential value in the eyes of market participants.
The elevated Price to Book ratio of 8.89 relative to the industry average by 1.67x suggests company might be overvalued based on its book value.
The Price to Sales ratio of 3.31, which is 1.86x the industry average, suggests the stock could potentially be overvalued in relation to its sales performance compared to its peers.
The Return on Equity (ROE) of 4.98% is 2.3% above the industry average, highlighting efficient use of equity to generate profits.
Compared to its industry, the company has higher Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $25.31 Billion, which is 5.27x above the industry average, indicating stronger profitability and robust cash flow generation.
With higher gross profit of $27.94 Billion, which indicates 2.19x above the industry average, the company demonstrates stronger profitability and higher earnings from its core operations.
With a revenue growth of 12.53%, which surpasses the industry average of 11.78%, the company is demonstrating robust sales expansion and gaining market share.

Debt To Equity Ratio

The debt-to-equity (D/E) ratio provides insights into the proportion of debt a company has in relation to its equity and asset value.

Considering the debt-to-equity ratio in industry comparisons allows for a concise evaluation of a company's financial health and risk profile, aiding in informed decision-making.

By analyzing Amazon.com in relation to its top 4 peers based on the Debt-to-Equity ratio, the following insights can be derived:

When comparing the debt-to-equity ratio, Amazon.com is in a stronger financial position compared to its top 4 peers.
The company has a lower level of debt relative to its equity, indicating a more favorable balance between the two with a lower debt-to-equity ratio of 0.62.

Key Takeaways

For Amazon.com, the PE ratio is low compared to its peers in the Broadline Retail industry, indicating potential undervaluation. The high PB and PS ratios suggest that the market values Amazon.com's assets and sales highly. In terms of profitability, Amazon.com demonstrates high ROE, EBITDA, and gross profit margins, reflecting strong operational efficiency. Additionally, the high revenue growth rate signifies robust top-line expansion compared to industry peers.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

AMZNAmazon.com Inc

$265.40-0.35%

Overview

Market News and Data brought to you by Benzinga APIs

To add Benzinga News as your preferred source on Google, click here.