Amidst today's fast-paced and highly competitive business environment, it is crucial for investors and industry enthusiasts to conduct comprehensive company evaluations. In this article, we will delve into an extensive industry comparison, evaluating Amazon.com AMZN in comparison to its major competitors within the Broadline Retail industry. By analyzing critical 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 | 50.79 | 9.64 | 4.09 | 6.19% | $32.08 | $31.0 | 11.04% |
| Alibaba Group Holding Ltd | 20.14 | 1.77 | 1.82 | 4.64% | $54.02 | $92.47 | 5.21% |
| PDD Holdings Inc | 10.92 | 4 | 3.17 | 9.38% | $29.18 | $59.65 | 44.33% |
| MercadoLibre Inc | 68.19 | 24.35 | 5.33 | 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 | 41.33 | 10.10 | 1.46 | 1.74% | $0.28 | $2.27 | 27.2% |
| eBay Inc | 17 | 5.96 | 3.36 | 11.59% | $0.95 | $1.85 | 3.04% |
| Dillard's Inc | 12.07 | 3.79 | 1.13 | 6.37% | $0.21 | $0.63 | -3.53% |
| Vipshop Holdings Ltd | 6.78 | 1.41 | 0.51 | 2.76% | $1.47 | $4.96 | -9.18% |
| MINISO Group Holding Ltd | 22.90 | 5.41 | 3.73 | 6.68% | $0.88 | $2.03 | 19.29% |
| Ollie's Bargain Outlet Holdings Inc | 33.19 | 4.23 | 3.06 | 2.24% | $0.06 | $0.21 | 7.79% |
| Macy's Inc | 25.54 | 1.04 | 0.19 | 0.66% | $0.29 | $2.04 | -2.68% |
| Nordstrom Inc | 15.32 | 4.05 | 0.27 | 4.75% | $0.3 | $1.31 | 4.34% |
| Savers Value Village Inc | 24.22 | 4.12 | 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 | 15.17 | 10.41 | 0.78 | 34.72% | $0.03 | $0.1 | -9.48% |
| Hour Loop Inc | 41.20 | 10.82 | 0.50 | 7.3% | $0.0 | $0.02 | 6.6% |
| Average | 23.31 | 5.86 | 1.69 | 7.13% | $6.54 | $13.55 | 7.83% |
By analyzing Amazon.com, we can infer the following trends:
-
Notably, the current Price to Earnings ratio for this stock, 50.79, is 2.18x above the industry norm, reflecting a higher valuation relative to the industry.
-
It could be trading at a premium in relation to its book value, as indicated by its Price to Book ratio of 9.64 which exceeds the industry average by 1.65x.
-
The Price to Sales ratio of 4.09, which is 2.42x the industry average, suggests the stock could potentially be overvalued in relation to its sales performance compared to its peers.
-
With a Return on Equity (ROE) of 6.19% that is 0.94% below the industry average, it appears that the company exhibits potential inefficiency in utilizing equity to generate profits.
-
Compared to its industry, the company has higher Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $32.08 Billion, which is 4.91x above the industry average, indicating stronger profitability and robust cash flow generation.
-
The gross profit of $31.0 Billion is 2.29x above that of its industry, highlighting stronger profitability and higher earnings from its core operations.
-
The company is experiencing remarkable revenue growth, with a rate of 11.04%, outperforming the industry average of 7.83%.
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 terms of the Debt-to-Equity ratio, Amazon.com stands in comparison with its top 4 peers, leading to the following comparisons:
-
Among its top 4 peers, Amazon.com has a stronger financial position with a lower debt-to-equity ratio of 0.52.
-
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 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, Amazon.com is underperforming compared to its peers. However, Amazon.com's high EBITDA, gross profit, and revenue growth suggest strong operational performance 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.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
