Inquiry Into Amazon.com's Competitor Dynamics In Broadline Retail Industry - Amazon.com (NASDAQ:AMZN)

In today's rapidly changing and highly competitive business world, it is vital for investors and industry enthusiasts to carefully assess companies. In this article, we will perform a comprehensive industry comparison, evaluating Amazon.com (NASDAQ:AMZN) against its key competitors in the Broadline Retail industry. By analyzing important financial metrics, market position, and growth prospects, we aim 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	36.46	7.77	3.70	5.79%	$36.48	$78.69	8.62%
Alibaba Group Holding Ltd	15.70	1.99	2.04	1.23%	$21.8	$90.83	6.57%
PDD Holdings Inc	11.56	3.33	2.85	4.59%	$16.09	$54.73	10.21%
MercadoLibre Inc	57.84	23.82	5.33	10.56%	$0.92	$2.77	36.97%
Coupang Inc	222.50	12.94	1.84	2.53%	$0.36	$2.32	11.16%
JD.com Inc	7.95	1.44	0.30	4.6%	$14.27	$47.85	15.78%
eBay Inc	18.46	7.15	3.65	9.95%	$0.77	$1.86	1.13%
Ollie's Bargain Outlet Holdings Inc	40.58	4.68	3.48	2.78%	$0.07	$0.24	13.35%
Vipshop Holdings Ltd	7.90	1.41	0.54	4.85%	$2.45	$6.08	-4.98%
Dillard's Inc	12.78	3.89	1.13	8.97%	$0.26	$0.69	-1.64%
MINISO Group Holding Ltd	16.24	3.68	2.25	3.98%	$0.65	$1.96	18.89%
Macy's Inc	6.06	0.73	0.15	0.84%	$0.31	$2.0	-4.14%
Savers Value Village Inc	72.71	3.82	1.09	-1.13%	$0.03	$0.2	4.51%
Kohl's Corp	8.83	0.29	0.07	-0.4%	$0.23	$1.4	-4.41%
Hour Loop Inc	169	10.22	0.43	11.93%	$0.0	$0.01	4.68%
Average	47.72	5.67	1.8	4.66%	$4.16	$15.21	7.72%

Upon a comprehensive analysis of Amazon.com, the following trends can be discerned:

At 36.46, the stock's Price to Earnings ratio is 0.76x less than the industry average, suggesting favorable growth potential.
The elevated Price to Book ratio of 7.77 relative to the industry average by 1.37x suggests company might be overvalued based on its book value.
With a relatively high Price to Sales ratio of 3.7, which is 2.06x the industry average, the stock might be considered overvalued based on sales performance.
The Return on Equity (ROE) of 5.79% is 1.13% above the industry average, highlighting efficient use of equity to generate profits.
Compared to its industry, 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 gross profit of $78.69 Billion is 5.17x above that of its industry, highlighting stronger profitability and higher earnings from its core operations.
The company's revenue growth of 8.62% exceeds the industry average of 7.72%, 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.

When comparing Amazon.com with its top 4 peers based on the Debt-to-Equity ratio, the following insights can be observed:

Amazon.com has a stronger financial position compared to its top 4 peers, as evidenced by its lower debt-to-equity ratio of 0.44.
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 ratio is low compared to its peers in the Broadline Retail industry, indicating potential undervaluation. The high PB and PS ratios suggest that the market values Amazon.com's assets and sales highly. In terms of ROE, EBITDA, gross profit, and revenue growth, Amazon.com outperforms its industry peers, reflecting strong financial performance and growth potential.

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

AMZNAmazon.com Inc

$272.35-%

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