In today's rapidly changing and fiercely competitive business landscape, it is vital for investors and industry enthusiasts to carefully evaluate companies. In this article, we will perform a comprehensive industry comparison, evaluating Amazon.com AMZN against its key competitors in the Broadline Retail industry. By analyzing important 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 | 50.66 | 9.62 | 4.08 | 6.19% | $32.08 | $31.0 | 11.04% |
| Alibaba Group Holding Ltd | 19.92 | 1.75 | 1.80 | 4.64% | $54.02 | $92.47 | 5.21% |
| PDD Holdings Inc | 11.05 | 4.05 | 3.21 | 9.38% | $29.18 | $59.65 | 44.33% |
| MercadoLibre Inc | 67.04 | 23.94 | 5.24 | 10.37% | $0.72 | $2.44 | 35.27% |
| JD.com Inc | 12.96 | 1.85 | 0.41 | 5.22% | $15.92 | $45.04 | 5.12% |
| Coupang Inc | 40.43 | 9.88 | 1.43 | 1.74% | $0.28 | $2.27 | 27.2% |
| eBay Inc | 16.62 | 5.83 | 3.28 | 11.59% | $0.95 | $1.85 | 3.04% |
| Vipshop Holdings Ltd | 6.88 | 1.43 | 0.52 | 2.76% | $1.47 | $4.96 | -9.18% |
| Dillard's Inc | 11.84 | 3.72 | 1.11 | 6.37% | $0.21 | $0.63 | -3.53% |
| MINISO Group Holding Ltd | 23.18 | 5.48 | 3.78 | 6.68% | $0.88 | $2.03 | 19.29% |
| Ollie's Bargain Outlet Holdings Inc | 33.51 | 4.27 | 3.09 | 2.24% | $0.06 | $0.21 | 7.79% |
| Macy's Inc | 25.25 | 1.03 | 0.19 | 0.66% | $0.29 | $2.04 | -2.68% |
| Nordstrom Inc | 15.33 | 4.05 | 0.27 | 4.75% | $0.3 | $1.31 | 4.34% |
| Savers Value Village Inc | 24.20 | 4.11 | 1.22 | 5.09% | $0.07 | $0.22 | 0.53% |
| Kohl's Corp | 5.95 | 0.39 | 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 | 21.96 | 5.49 | 1.76 | 7.12% | $6.98 | $14.45 | 7.92% |
By conducting an in-depth analysis of Amazon.com, we can identify the following trends:
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At 50.66, 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 9.62 which exceeds the industry average by 1.75x.
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The Price to Sales ratio of 4.08, 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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The Return on Equity (ROE) of 6.19% is 0.93% below the industry average, suggesting potential inefficiency in utilizing equity to generate profits.
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The Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $32.08 Billion is 4.6x above the industry average, highlighting stronger profitability and robust cash flow generation.
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Compared to its industry, 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 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.
When comparing Amazon.com with its top 4 peers based on the Debt-to-Equity ratio, the following insights can be observed:
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Amazon.com demonstrates a stronger financial position compared to its top 4 peers in the sector.
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With a lower debt-to-equity ratio of 0.52, the company relies less on debt financing and maintains a healthier balance between debt and equity, which can be viewed positively 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 below average within the industry sector. The low ROE and high EBITDA, gross profit, and revenue growth suggest potential areas for improvement in Amazon.com's financial performance relative 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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