In the dynamic and cutthroat world of business, conducting thorough company analysis is essential 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 | 46.78 | 8.88 | 3.77 | 6.19% | $32.08 | $31.0 | 11.04% |
| Alibaba Group Holding Ltd | 16.77 | 1.47 | 1.52 | 4.64% | $54.02 | $92.47 | 5.21% |
| PDD Holdings Inc | 9.44 | 3.46 | 2.74 | 9.38% | $29.18 | $59.65 | 44.33% |
| MercadoLibre Inc | 62.39 | 22.28 | 4.88 | 10.37% | $0.72 | $2.44 | 35.27% |
| JD.com Inc | 10.78 | 1.54 | 0.34 | 5.22% | $15.92 | $45.04 | 5.12% |
| Coupang Inc | 37.51 | 9.16 | 1.33 | 1.74% | $0.28 | $2.27 | 27.2% |
| eBay Inc | 16.60 | 5.82 | 3.28 | 11.59% | $0.95 | $1.85 | 3.04% |
| MINISO Group Holding Ltd | 24.70 | 5.83 | 4.03 | 6.68% | $0.88 | $2.03 | 19.29% |
| Dillard's Inc | 11.51 | 3.62 | 1.08 | 6.37% | $0.21 | $0.63 | -3.53% |
| Vipshop Holdings Ltd | 6.26 | 1.30 | 0.47 | 2.76% | $1.47 | $4.96 | -9.18% |
| Ollie's Bargain Outlet Holdings Inc | 31.65 | 4.03 | 2.92 | 2.24% | $0.06 | $0.21 | 7.79% |
| Macy's Inc | 25.97 | 1.06 | 0.19 | 0.66% | $0.29 | $2.04 | -2.68% |
| Nordstrom Inc | 15.20 | 4.01 | 0.27 | 4.75% | $0.3 | $1.31 | 4.34% |
| Savers Value Village Inc | 22.74 | 3.86 | 1.15 | 5.09% | $0.07 | $0.22 | 0.53% |
| Kohl's Corp | 6.16 | 0.40 | 0.09 | 0.58% | $0.28 | $1.57 | -8.49% |
| Groupon Inc | 17.62 | 12.09 | 0.90 | 34.72% | $0.03 | $0.1 | -9.48% |
| Average | 21.02 | 5.33 | 1.68 | 7.12% | $6.98 | $14.45 | 7.92% |
By closely examining Amazon.com, we can identify the following trends:
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The Price to Earnings ratio of 46.78 for this company is 2.23x above the industry average, indicating a premium valuation associated with the stock.
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With a Price to Book ratio of 8.88, which is 1.67x the industry average, Amazon.com might be considered overvalued in terms of its book value, as it is trading at a higher multiple compared to its industry peers.
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The stock's relatively high Price to Sales ratio of 3.77, surpassing the industry average by 2.24x, may indicate an aspect of overvaluation in terms of sales performance.
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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 company has higher Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $32.08 Billion, which is 4.6x above the industry average, indicating stronger profitability and robust cash flow generation.
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The gross profit of $31.0 Billion is 2.15x above that of its industry, highlighting 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 assesses the extent to which a company relies on borrowed funds compared 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.
By considering the Debt-to-Equity ratio, Amazon.com can be compared to its top 4 peers, leading to the following observations:
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When comparing the debt-to-equity ratio, Amazon.com is in a stronger financial position compared to its top 4 peers.
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The company has a lower level of debt relative to its equity, indicating a more favorable balance between the two with a lower debt-to-equity ratio of 0.52.
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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