In today's rapidly changing and highly competitive business world, it is imperative for investors and industry observers to carefully assess companies before making investment choices. In this article, we will undertake a comprehensive industry comparison, evaluating Amazon.com AMZN vis-à-vis its key competitors in the Broadline Retail industry. Through a detailed analysis of important financial indicators, market standing, and growth potential, our goal is to provide valuable insights and highlight 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 | 50.73 | 9.63 | 4.09 | 6.19% | $32.08 | $31.0 | 11.04% |
| Alibaba Group Holding Ltd | 20.12 | 1.76 | 1.82 | 4.64% | $54.02 | $92.47 | 5.21% |
| PDD Holdings Inc | 10.28 | 3.77 | 2.99 | 9.38% | $29.18 | $59.65 | 44.33% |
| MercadoLibre Inc | 67.72 | 24.18 | 5.29 | 10.37% | $0.72 | $2.44 | 35.27% |
| JD.com Inc | 12.77 | 1.82 | 0.40 | 5.22% | $15.92 | $45.04 | 5.12% |
| Coupang Inc | 41.45 | 10.13 | 1.47 | 1.74% | $0.28 | $2.27 | 27.2% |
| eBay Inc | 16.92 | 5.94 | 3.34 | 11.59% | $0.95 | $1.85 | 3.04% |
| Dillard's Inc | 11.90 | 3.74 | 1.12 | 6.37% | $0.21 | $0.63 | -3.53% |
| MINISO Group Holding Ltd | 22.93 | 5.42 | 3.74 | 6.68% | $0.88 | $2.03 | 19.29% |
| Vipshop Holdings Ltd | 6.57 | 1.36 | 0.49 | 2.76% | $1.47 | $4.96 | -9.18% |
| Ollie's Bargain Outlet Holdings Inc | 32.03 | 4.08 | 2.95 | 2.24% | $0.06 | $0.21 | 7.79% |
| Macy's Inc | 24.97 | 1.02 | 0.18 | 0.66% | $0.29 | $2.04 | -2.68% |
| Nordstrom Inc | 15.29 | 4.04 | 0.27 | 4.75% | $0.3 | $1.31 | 4.34% |
| Savers Value Village Inc | 23.89 | 4.06 | 1.21 | 5.09% | $0.07 | $0.22 | 0.53% |
| Kohl's Corp | 5.85 | 0.38 | 0.09 | 0.58% | $0.28 | $1.57 | -8.49% |
| Groupon Inc | 15.12 | 10.37 | 0.78 | 34.72% | $0.03 | $0.1 | -9.48% |
| Hour Loop Inc | 47.80 | 12.56 | 0.59 | 7.3% | $0.0 | $0.02 | 6.6% |
| Average | 23.48 | 5.91 | 1.67 | 7.13% | $6.54 | $13.55 | 7.83% |
When analyzing Amazon.com, the following trends become evident:
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The current Price to Earnings ratio of 50.73 is 2.16x 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 9.63 relative to the industry average by 1.63x suggests company might be overvalued based on its book value.
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The Price to Sales ratio of 4.09, which is 2.45x 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 0.94% below the industry average, it appears that the company exhibits potential inefficiency in utilizing equity to generate profits.
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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.
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With higher gross profit of $31.0 Billion, which indicates 2.29x above the industry average, the company demonstrates stronger profitability and higher earnings from its core operations.
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With a revenue growth of 11.04%, which surpasses the industry average of 7.83%, the company is demonstrating robust sales expansion and gaining market share.
Debt To Equity Ratio
The debt-to-equity (D/E) ratio is an important measure to assess the financial structure and risk profile of a company.
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 assessing Amazon.com against its top 4 peers using the Debt-to-Equity ratio, the following comparisons can be made:
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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 efficiency and revenue generation 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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