In the fast-paced 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 in comparison to its major competitors within the Broadline Retail industry. By analyzing crucial 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 | 48.63 | 9.24 | 3.92 | 6.19% | $32.08 | $31.0 | 11.04% |
| Alibaba Group Holding Ltd | 17.79 | 1.56 | 1.61 | 4.64% | $54.02 | $92.47 | 5.21% |
| PDD Holdings Inc | 9.86 | 3.62 | 2.87 | 9.38% | $29.18 | $59.65 | 44.33% |
| MercadoLibre Inc | 63.83 | 22.80 | 4.99 | 10.37% | $0.72 | $2.44 | 35.27% |
| JD.com Inc | 11.42 | 1.63 | 0.36 | 5.22% | $15.92 | $45.04 | 5.12% |
| Coupang Inc | 39.08 | 9.55 | 1.38 | 1.74% | $0.28 | $2.27 | 27.2% |
| eBay Inc | 15.85 | 5.56 | 3.13 | 11.59% | $0.95 | $1.85 | 3.04% |
| MINISO Group Holding Ltd | 24.48 | 5.78 | 3.99 | 6.68% | $0.88 | $2.03 | 19.29% |
| Vipshop Holdings Ltd | 6.36 | 1.32 | 0.48 | 2.76% | $1.47 | $4.96 | -9.18% |
| Dillard's Inc | 11.50 | 3.61 | 1.08 | 6.37% | $0.21 | $0.63 | -3.53% |
| Ollie's Bargain Outlet Holdings Inc | 31.60 | 4.02 | 2.91 | 2.24% | $0.06 | $0.21 | 7.79% |
| Macy's Inc | 26.89 | 1.10 | 0.20 | 0.66% | $0.29 | $2.04 | -2.68% |
| Nordstrom Inc | 15.29 | 4.04 | 0.27 | 4.75% | $0.3 | $1.31 | 4.34% |
| Kohl's Corp | 6.31 | 0.41 | 0.09 | 0.58% | $0.28 | $1.57 | -8.49% |
| Savers Value Village Inc | 20.96 | 3.56 | 1.06 | 5.09% | $0.07 | $0.22 | 0.53% |
| Groupon Inc | 17.81 | 12.22 | 0.91 | 34.72% | $0.03 | $0.1 | -9.48% |
| Average | 21.27 | 5.39 | 1.69 | 7.12% | $6.98 | $14.45 | 7.92% |
Through a detailed examination of Amazon.com, we can deduce the following trends:
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The Price to Earnings ratio of 48.63 for this company is 2.29x above the industry average, indicating a premium valuation associated with the stock.
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With a Price to Book ratio of 9.24, which is 1.71x the industry average, Amazon.com might be considered overvalued in terms of its book value, as it is trading at a higher multiple compared to its industry peers.
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With a relatively high Price to Sales ratio of 3.92, which is 2.32x 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 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.
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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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The company's revenue growth of 11.04% is notably higher compared to the industry average of 7.92%, showcasing exceptional sales performance and strong demand for its products or services.
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.
In light of the Debt-to-Equity ratio, a comparison between Amazon.com and its top 4 peers reveals the following information:
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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 that the stock may be overvalued. The low ROE suggests that Amazon.com is not generating significant returns on shareholder equity. However, the high EBITDA, gross profit, and revenue growth show that the company is performing well in terms of operational and financial metrics compared to its 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.
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