Industry Comparison: Evaluating Amazon.com Against Competitors In Broadline Retail Industry

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 36.65 7.81 3.72 5.79% $36.48 $78.69 8.62%
Alibaba Group Holding Ltd 14.30 1.81 1.86 1.23% $21.8 $90.83 6.57%
PDD Holdings Inc 11.24 3.24 2.77 4.59% $16.09 $54.73 10.21%
MercadoLibre Inc 58.73 24.19 5.41 10.56% $0.92 $2.77 36.97%
Coupang Inc 214.86 12.49 1.77 2.53% $0.36 $2.32 11.16%
JD.com Inc 7.57 1.37 0.28 4.6% $14.27 $47.85 15.78%
eBay Inc 18.54 7.18 3.66 9.95% $0.77 $1.86 1.13%
Vipshop Holdings Ltd 7.85 1.40 0.54 4.85% $2.45 $6.08 -4.98%
Ollie's Bargain Outlet Holdings Inc 39.08 4.50 3.35 2.78% $0.07 $0.24 13.35%
Dillard's Inc 11.97 3.64 1.05 8.97% $0.26 $0.69 -1.64%
MINISO Group Holding Ltd 16.17 3.66 2.24 3.98% $0.65 $1.96 18.89%
Macy's Inc 6.33 0.76 0.15 0.84% $0.31 $2.0 -4.14%
Savers Value Village Inc 73.43 3.86 1.10 -1.13% $0.03 $0.2 4.51%
Kohl's Corp 8.78 0.28 0.07 -0.4% $0.23 $1.4 -4.41%
Hour Loop Inc 161 9.73 0.41 11.93% $0.0 $0.01 4.68%
Average 46.42 5.58 1.76 4.66% $4.16 $15.21 7.72%

Through a detailed examination of Amazon.com, we can deduce the following trends:

  • A Price to Earnings ratio of 36.65 significantly below the industry average by 0.79x suggests undervaluation. This can make the stock appealing for those seeking growth.

  • With a Price to Book ratio of 7.81, which is 1.4x 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.

  • The Price to Sales ratio of 3.72, which is 2.11x the industry average, suggests the stock could potentially be overvalued in relation to its sales performance compared to its peers.

  • The Return on Equity (ROE) of 5.79% is 1.13% above the industry average, highlighting efficient use of equity to generate profits.

  • The company has higher Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $36.48 Billion, which is 8.77x above the industry average, indicating stronger profitability and robust cash flow generation.

  • The company has higher gross profit of $78.69 Billion, which indicates 5.17x above the industry average, indicating stronger profitability and higher earnings from its core operations.

  • The company's revenue growth of 8.62% is notably higher compared to the industry average of 7.72%, showcasing exceptional sales performance and strong demand for its products or services.

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 can be assessed by comparing it to its top 4 peers, resulting in the following observations:

  • When comparing the debt-to-equity ratio, Amazon.com is in a stronger financial position compared to its top 4 peers.

  • 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 0.44.

Key Takeaways

For Amazon.com, the PE ratio is low compared to peers, indicating potential undervaluation. The PB and PS ratios are high, suggesting overvaluation relative to industry peers. In terms of ROE, EBITDA, gross profit, and revenue growth, Amazon.com demonstrates strong performance compared to its industry counterparts.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

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AMZNAmazon.com Inc
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