Amidst today's fast-paced and highly competitive business environment, it is crucial for investors and industry enthusiasts to conduct comprehensive company evaluations. In this article, we will delve into an extensive industry comparison, evaluating Amazon.com AMZN in comparison to its major competitors within the Broadline Retail industry. By analyzing critical financial metrics, market position, and growth potential, our objective is to provide valuable insights for investors and offer a deeper understanding of company's performance in 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 | 47.29 | 8.98 | 3.81 | 6.19% | $32.08 | $31.0 | 11.04% |
| Alibaba Group Holding Ltd | 17.45 | 1.53 | 1.58 | 4.64% | $54.02 | $92.47 | 5.21% |
| PDD Holdings Inc | 9.37 | 3.44 | 2.72 | 9.38% | $29.18 | $59.65 | 44.33% |
| MercadoLibre Inc | 61.08 | 21.81 | 4.77 | 10.37% | $0.72 | $2.44 | 35.27% |
| JD.com Inc | 11.11 | 1.59 | 0.35 | 5.22% | $15.92 | $45.04 | 5.12% |
| Coupang Inc | 39.06 | 9.54 | 1.38 | 1.74% | $0.28 | $2.27 | 27.2% |
| eBay Inc | 15.63 | 5.48 | 3.09 | 11.59% | $0.95 | $1.85 | 3.04% |
| MINISO Group Holding Ltd | 24.21 | 5.72 | 3.95 | 6.68% | $0.88 | $2.03 | 19.29% |
| Vipshop Holdings Ltd | 6.38 | 1.32 | 0.48 | 2.76% | $1.47 | $4.96 | -9.18% |
| Dillard's Inc | 11.35 | 3.56 | 1.06 | 6.37% | $0.21 | $0.63 | -3.53% |
| Ollie's Bargain Outlet Holdings Inc | 32.89 | 4.19 | 3.03 | 2.24% | $0.06 | $0.21 | 7.79% |
| Macy's Inc | 27.49 | 1.12 | 0.20 | 0.66% | $0.29 | $2.04 | -3.79% |
| Nordstrom Inc | 15.26 | 4.03 | 0.27 | 4.75% | $0.3 | $1.31 | 4.34% |
| Savers Value Village Inc | 21.85 | 3.71 | 1.10 | 5.09% | $0.07 | $0.22 | 0.53% |
| Kohl's Corp | 6.24 | 0.41 | 0.09 | 0.58% | $0.28 | $1.57 | -8.49% |
| Groupon Inc | 17.51 | 12.01 | 0.90 | 34.72% | $0.03 | $0.1 | -9.48% |
| Average | 21.13 | 5.3 | 1.66 | 7.12% | $6.98 | $14.45 | 7.84% |
Through a thorough examination of Amazon.com, we can discern the following trends:
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At 47.29, the stock's Price to Earnings ratio significantly exceeds the industry average by 2.24x, suggesting a premium valuation relative to industry peers.
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It could be trading at a premium in relation to its book value, as indicated by its Price to Book ratio of 8.98 which exceeds the industry average by 1.69x.
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With a relatively high Price to Sales ratio of 3.81, which is 2.3x the industry average, the stock might be considered overvalued based on sales performance.
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The company has a lower Return on Equity (ROE) of 6.19%, which is 0.93% below the industry average. This indicates potential inefficiency in utilizing equity to generate profits, which could be attributed to various factors.
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The company exhibits higher Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $32.08 Billion, which is 4.6x above the industry average, implying stronger profitability and robust cash flow generation.
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The gross profit of $31.0 Billion is 2.15x above that of its industry, highlighting stronger profitability and higher earnings from its core operations.
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With a revenue growth of 11.04%, which surpasses the industry average of 7.84%, the company is demonstrating robust sales expansion and gaining market share.
Debt To Equity Ratio
The debt-to-equity (D/E) ratio helps evaluate the capital structure and financial leverage of a company.
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.
When evaluating Amazon.com alongside its top 4 peers in terms of the Debt-to-Equity ratio, the following insights arise:
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Compared to its top 4 peers, Amazon.com has a stronger financial position indicated by its lower debt-to-equity ratio of 0.52.
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This suggests that the company relies less on debt financing and has a more favorable balance between debt and equity, which can be seen as a positive attribute by investors.
Key Takeaways
For Amazon.com, the PE, PB, and PS ratios are all high compared to its peers in the Broadline Retail industry, indicating overvaluation. The low ROE suggests lower profitability relative to its high EBITDA and gross profit margins. Additionally, the high revenue growth rate may be driving the high valuation multiples for Amazon.com within the industry sector.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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