Analyzing Amazon.com In Comparison To Competitors In Broadline Retail Industry - Amazon.com (NASDAQ:AMZN)

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 (NASDAQ: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	33.73	7.07	3.56	5.68%	$36.6	$86.89	13.33%
Alibaba Group Holding Ltd	15.90	2.01	2.07	1.23%	$21.8	$90.83	6.57%
PDD Holdings Inc	12.12	3.50	2.99	4.59%	$16.09	$54.73	10.21%
MercadoLibre Inc	56.61	20.34	4.82	9.76%	$0.95	$3.09	33.85%
Coupang Inc	138.35	10.77	1.59	0.71%	$0.34	$2.56	16.4%
JD.com Inc	7.59	1.38	0.28	4.6%	$14.27	$47.85	15.78%
eBay Inc	21.18	9.17	4.38	7.59%	$0.65	$1.95	6.14%
Ollie's Bargain Outlet Holdings Inc	41.54	4.79	3.57	2.78%	$0.07	$0.24	13.35%
Vipshop Holdings Ltd	7.91	1.41	0.55	4.85%	$2.45	$6.08	-4.98%
Dillard's Inc	12.94	3.93	1.14	8.97%	$0.26	$0.69	-1.64%
MINISO Group Holding Ltd	18.29	4.14	2.53	3.98%	$0.65	$1.96	18.89%
Macy's Inc	6.12	0.74	0.15	0.84%	$0.31	$2.0	-4.14%
Savers Value Village Inc	55.20	4.06	1.15	4.52%	$0.06	$0.23	7.9%
Kohl's Corp	11.20	0.36	0.09	-0.4%	$0.23	$1.4	-4.41%
Hour Loop Inc	183	11.06	0.46	11.93%	$0.0	$0.01	4.68%
Average	42.0	5.55	1.84	4.71%	$4.15	$15.26	8.47%

By conducting an in-depth analysis of Amazon.com, we can identify the following trends:

A Price to Earnings ratio of 33.73 significantly below the industry average by 0.8x suggests undervaluation. This can make the stock appealing for those seeking growth.
With a Price to Book ratio of 7.07, which is 1.27x 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 3.56, which is 1.93x the industry average, suggests the stock could potentially be overvalued in relation to its sales performance compared to its peers.
The company has a higher Return on Equity (ROE) of 5.68%, which is 0.97% above the industry average. This suggests efficient use of equity to generate profits and demonstrates profitability and growth potential.
With higher Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $36.6 Billion, which is 8.82x above the industry average, the company demonstrates stronger profitability and robust cash flow generation.
The gross profit of $86.89 Billion is 5.69x above that of its industry, highlighting stronger profitability and higher earnings from its core operations.
The company is experiencing remarkable revenue growth, with a rate of 13.33%, outperforming the industry average of 8.47%.

Debt To Equity Ratio

The debt-to-equity (D/E) ratio gauges the extent to which a company has financed its operations through debt relative to 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:

Compared to its top 4 peers, Amazon.com has a stronger financial position indicated by its lower debt-to-equity ratio of 0.4.
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 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

$278.33-2.00%

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