In the ever-changing and fiercely competitive business landscape, conducting thorough company analysis is crucial 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 | 50.30 | 9.55 | 4.06 | 6.19% | $32.08 | $31.0 | 11.04% |
| Alibaba Group Holding Ltd | 18.52 | 1.62 | 1.68 | 4.64% | $54.02 | $92.47 | 5.21% |
| PDD Holdings Inc | 10.93 | 4.01 | 3.18 | 9.38% | $29.18 | $59.65 | 44.33% |
| MercadoLibre Inc | 65.48 | 23.39 | 5.12 | 10.37% | $0.72 | $2.44 | 35.27% |
| JD.com Inc | 12.97 | 1.85 | 0.41 | 5.22% | $15.92 | $45.04 | 5.12% |
| Coupang Inc | 39.90 | 9.75 | 1.41 | 1.74% | $0.28 | $2.27 | 27.2% |
| eBay Inc | 16.84 | 5.91 | 3.32 | 11.59% | $0.95 | $1.85 | 3.04% |
| Vipshop Holdings Ltd | 7.15 | 1.48 | 0.54 | 2.76% | $1.47 | $4.96 | -9.18% |
| Dillard's Inc | 12.30 | 3.86 | 1.15 | 6.37% | $0.21 | $0.63 | -3.53% |
| MINISO Group Holding Ltd | 22.98 | 5.43 | 3.75 | 6.68% | $0.88 | $2.03 | 19.29% |
| Ollie's Bargain Outlet Holdings Inc | 33.65 | 4.28 | 3.10 | 2.24% | $0.06 | $0.21 | 7.79% |
| Macy's Inc | 25.05 | 1.02 | 0.18 | 0.66% | $0.29 | $2.04 | -2.68% |
| Nordstrom Inc | 15.30 | 4.04 | 0.27 | 4.75% | $0.3 | $1.31 | 4.34% |
| Savers Value Village Inc | 24.02 | 4.08 | 1.21 | 5.09% | $0.07 | $0.22 | 0.53% |
| Kohl's Corp | 6.10 | 0.40 | 0.09 | 0.58% | $0.28 | $1.57 | -8.49% |
| Groupon Inc | 15.22 | 10.44 | 0.78 | 34.72% | $0.03 | $0.1 | -9.48% |
| Average | 21.76 | 5.44 | 1.75 | 7.12% | $6.98 | $14.45 | 7.92% |
Upon a comprehensive analysis of Amazon.com, the following trends can be discerned:
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At 50.3, the stock's Price to Earnings ratio significantly exceeds the industry average by 2.31x, 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 9.55 which exceeds the industry average by 1.76x.
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The Price to Sales ratio of 4.06, which is 2.32x 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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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 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's revenue growth of 11.04% exceeds the industry average of 7.92%, indicating strong sales performance and market outperformance.
Debt To Equity Ratio
The debt-to-equity (D/E) ratio indicates the proportion of debt and equity used by a company to finance its assets and operations.
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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Amazon.com has a stronger financial position compared to its top 4 peers, as evidenced by its lower debt-to-equity ratio of 0.52.
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This suggests that the company has a more favorable balance between debt and equity, which can be perceived as a positive indicator 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 strong returns on shareholder equity. However, the high EBITDA, gross profit, and revenue growth show that the company is performing well in terms of operational efficiency and revenue generation 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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