In the dynamic and cutthroat world of business, conducting thorough company analysis is essential for investors and industry experts. In this article, we will undertake a comprehensive industry comparison, evaluating Amazon.com AMZN and its primary competitors in the Broadline Retail industry. By closely examining key financial metrics, market position, and growth prospects, our aim is 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 | 47.06 | 8.94 | 3.79 | 6.19% | $32.08 | $31.0 | 11.04% |
| Alibaba Group Holding Ltd | 17.62 | 1.55 | 1.60 | 4.64% | $54.02 | $92.47 | 5.21% |
| PDD Holdings Inc | 9.62 | 3.53 | 2.80 | 9.38% | $29.18 | $59.65 | 44.33% |
| MercadoLibre Inc | 62.61 | 22.36 | 4.89 | 10.37% | $0.72 | $2.44 | 35.27% |
| JD.com Inc | 11.10 | 1.58 | 0.35 | 5.22% | $15.92 | $45.04 | 5.12% |
| Coupang Inc | 39.18 | 9.57 | 1.39 | 1.74% | $0.28 | $2.27 | 27.2% |
| eBay Inc | 15.69 | 5.50 | 3.10 | 11.59% | $0.95 | $1.85 | 3.04% |
| MINISO Group Holding Ltd | 25.56 | 6.04 | 4.17 | 6.68% | $0.88 | $2.03 | 19.29% |
| Dillard's Inc | 11.63 | 3.65 | 1.09 | 6.37% | $0.21 | $0.63 | -3.53% |
| Vipshop Holdings Ltd | 6.28 | 1.30 | 0.47 | 2.76% | $1.47 | $4.96 | -9.18% |
| Ollie's Bargain Outlet Holdings Inc | 32.22 | 4.10 | 2.97 | 2.24% | $0.06 | $0.21 | 7.79% |
| Macy's Inc | 27.15 | 1.11 | 0.20 | 0.66% | $0.29 | $2.04 | -3.79% |
| Nordstrom Inc | 15.28 | 4.04 | 0.27 | 4.75% | $0.3 | $1.31 | 4.34% |
| Savers Value Village Inc | 22.30 | 3.79 | 1.13 | 5.09% | $0.07 | $0.22 | 0.53% |
| Kohl's Corp | 6.32 | 0.41 | 0.09 | 0.58% | $0.28 | $1.57 | -8.49% |
| Groupon Inc | 17.39 | 11.93 | 0.89 | 34.72% | $0.03 | $0.1 | -9.48% |
| Average | 21.33 | 5.36 | 1.69 | 7.12% | $6.98 | $14.45 | 7.84% |
When closely examining Amazon.com, the following trends emerge:
-
Notably, the current Price to Earnings ratio for this stock, 47.06, is 2.21x above the industry norm, reflecting a higher valuation relative to the industry.
-
The elevated Price to Book ratio of 8.94 relative to the industry average by 1.67x suggests company might be overvalued based on its book value.
-
The stock's relatively high Price to Sales ratio of 3.79, surpassing the industry average by 2.24x, may indicate an aspect of overvaluation in terms of sales performance.
-
With a Return on Equity (ROE) of 6.19% that is 0.93% below the industry average, it appears that the company exhibits potential inefficiency in utilizing equity to generate profits.
-
The company has higher Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $32.08 Billion, which is 4.6x above the industry average, indicating stronger profitability and robust cash flow generation.
-
The company has higher gross profit of $31.0 Billion, which indicates 2.15x above the industry average, indicating stronger profitability and higher earnings from its core operations.
-
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 is a financial metric that helps determine the level of financial risk associated with a company's capital structure.
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 examining Amazon.com in comparison to its top 4 peers with respect to the Debt-to-Equity ratio, the following information becomes apparent:
-
When considering the debt-to-equity ratio, Amazon.com exhibits a stronger financial position compared to its top 4 peers.
-
This indicates that the company has a favorable balance between debt and equity, with a lower debt-to-equity ratio of 0.52, which can be perceived as a positive aspect by investors.
Key Takeaways
For PE, PB, and PS ratios, Amazon.com is considered overvalued compared to its peers in the Broadline Retail industry. This is indicated by the high PE, PB, and PS ratios. In terms of ROE, EBITDA, gross profit, and revenue growth, Amazon.com's performance is mixed. While it has high EBITDA, gross profit, and revenue growth, its ROE is low compared to industry peers.
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.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
