In today's rapidly changing and fiercely competitive business landscape, it is essential for investors and industry enthusiasts to thoroughly analyze companies. In this article, we will conduct a comprehensive industry comparison, evaluating Amazon.com AMZN against its key competitors in the Broadline Retail industry. By examining key 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 | 50.30 | 9.55 | 4.06 | 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 | 10.29 | 3.77 | 2.99 | 9.38% | $29.18 | $59.65 | 44.33% |
| MercadoLibre Inc | 64.87 | 23.17 | 5.07 | 10.37% | $0.72 | $2.44 | 35.27% |
| JD.com Inc | 12.50 | 1.78 | 0.39 | 5.22% | $15.92 | $45.04 | 5.12% |
| Coupang Inc | 38.67 | 9.45 | 1.37 | 1.74% | $0.28 | $2.27 | 27.2% |
| eBay Inc | 16.31 | 5.72 | 3.22 | 11.59% | $0.95 | $1.85 | 3.04% |
| Vipshop Holdings Ltd | 6.89 | 1.43 | 0.52 | 2.76% | $1.47 | $4.96 | -9.18% |
| Dillard's Inc | 12.26 | 3.85 | 1.15 | 6.37% | $0.21 | $0.63 | -3.53% |
| MINISO Group Holding Ltd | 22.42 | 5.29 | 3.66 | 6.68% | $0.88 | $2.03 | 19.29% |
| Ollie's Bargain Outlet Holdings Inc | 33.32 | 4.24 | 3.07 | 2.24% | $0.06 | $0.21 | 7.79% |
| Macy's Inc | 24.64 | 1.01 | 0.18 | 0.66% | $0.29 | $2.04 | -2.68% |
| Nordstrom Inc | 15.28 | 4.04 | 0.27 | 4.75% | $0.3 | $1.31 | 4.34% |
| Savers Value Village Inc | 24.30 | 4.13 | 1.23 | 5.09% | $0.07 | $0.22 | 0.53% |
| Kohl's Corp | 6.19 | 0.40 | 0.09 | 0.58% | $0.28 | $1.57 | -8.49% |
| Groupon Inc | 15.30 | 10.50 | 0.79 | 34.72% | $0.03 | $0.1 | -9.48% |
| Average | 21.4 | 5.36 | 1.71 | 7.12% | $6.98 | $14.45 | 7.92% |
Through an analysis of Amazon.com, we can infer the following trends:
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The current Price to Earnings ratio of 50.3 is 2.35x higher than the industry average, indicating the stock is priced at a premium level according to the market sentiment.
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The elevated Price to Book ratio of 9.55 relative to the industry average by 1.78x suggests company might be overvalued based on its book value.
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The Price to Sales ratio of 4.06, which is 2.37x the industry average, suggests the stock could potentially be overvalued in relation to its sales performance compared to its peers.
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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.
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With higher Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $32.08 Billion, which is 4.6x above the industry average, the company demonstrates stronger profitability and robust cash flow generation.
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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.
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The company is experiencing remarkable revenue growth, with a rate of 11.04%, outperforming the industry average of 7.92%.
Debt To Equity Ratio
The debt-to-equity (D/E) ratio measures the financial leverage of a company by evaluating its debt relative to its equity.
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:
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Among its top 4 peers, Amazon.com has a stronger financial position with a lower debt-to-equity ratio of 0.52.
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This indicates that the company relies less on debt financing and maintains a more favorable balance between debt and equity, which can be viewed positively 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 compared to industry peers. However, Amazon.com's high EBITDA, gross profit, and revenue growth indicate strong operational performance and growth potential 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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