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 | 50.46 | 9.58 | 4.07 | 6.19% | $32.08 | $31.0 | 11.04% |
| Alibaba Group Holding Ltd | 20.26 | 1.78 | 1.84 | 4.64% | $54.02 | $92.47 | 5.21% |
| PDD Holdings Inc | 10.76 | 3.95 | 3.13 | 9.38% | $29.18 | $59.65 | 44.33% |
| MercadoLibre Inc | 70.07 | 25.02 | 5.48 | 10.37% | $0.72 | $2.44 | 35.27% |
| JD.com Inc | 12.70 | 1.81 | 0.40 | 5.22% | $15.92 | $45.04 | 5.12% |
| Coupang Inc | 42.21 | 10.31 | 1.49 | 1.74% | $0.28 | $2.27 | 27.2% |
| eBay Inc | 16.97 | 5.96 | 3.35 | 11.59% | $0.95 | $1.85 | 3.04% |
| Dillard's Inc | 12.25 | 3.85 | 1.15 | 6.37% | $0.21 | $0.63 | -3.53% |
| Vipshop Holdings Ltd | 6.79 | 1.41 | 0.51 | 2.76% | $1.47 | $4.96 | -9.18% |
| MINISO Group Holding Ltd | 22.34 | 5.28 | 3.64 | 6.68% | $0.88 | $2.03 | 19.29% |
| Ollie's Bargain Outlet Holdings Inc | 31.90 | 4.06 | 2.94 | 2.24% | $0.06 | $0.21 | 7.79% |
| Macy's Inc | 24.39 | 1 | 0.18 | 0.66% | $0.29 | $2.04 | -2.68% |
| Nordstrom Inc | 15.36 | 4.06 | 0.27 | 4.75% | $0.3 | $1.31 | 4.34% |
| Savers Value Village Inc | 24.28 | 4.13 | 1.23 | 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 | 16.80 | 11.52 | 0.86 | 34.72% | $0.03 | $0.1 | -9.48% |
| Hour Loop Inc | 47 | 12.35 | 0.58 | 7.3% | $0.0 | $0.02 | 6.6% |
| Average | 23.75 | 6.05 | 1.7 | 7.13% | $6.54 | $13.55 | 7.83% |
After a detailed analysis of Amazon.com, the following trends become apparent:
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Notably, the current Price to Earnings ratio for this stock, 50.46, is 2.12x above the industry norm, reflecting a higher valuation relative to the industry.
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With a Price to Book ratio of 9.58, which is 1.58x 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 4.07, surpassing the industry average by 2.39x, may indicate an aspect of overvaluation in terms of sales performance.
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The Return on Equity (ROE) of 6.19% is 0.94% 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 4.91x above the industry average, highlighting stronger profitability and robust cash flow generation.
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The company has higher gross profit of $31.0 Billion, which indicates 2.29x above the industry average, indicating stronger profitability and higher earnings from its core operations.
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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 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 evaluating Amazon.com against its top 4 peers in terms of the Debt-to-Equity ratio, the following observations arise:
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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 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 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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