Comparative Study: Amazon.com And Industry Competitors In Broadline Retail Industry - Amazon.com (NASDAQ:

In the fast-paced and highly competitive business world of today, conducting thorough company analysis is essential for investors and industry observers. In this article, we will conduct an extensive industry comparison, evaluating Amazon.com (NASDAQ:AMZN) in relation to its major competitors in the Broadline Retail industry. Through a detailed examination of key financial metrics, market standing, and growth prospects, our objective is to provide valuable insights and illuminate company's performance in 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	33.83	7.09	3.57	5.68%	$36.6	$86.89	13.33%
Alibaba Group Holding Ltd	15.83	2	2.06	1.23%	$21.8	$90.83	6.57%
PDD Holdings Inc	13.18	3.80	3.25	4.59%	$16.09	$54.73	10.21%
MercadoLibre Inc	57.73	20.74	4.92	9.76%	$0.95	$3.09	33.85%
Coupang Inc	141.10	10.98	1.62	0.71%	$0.34	$2.56	16.4%
eBay Inc	21.97	9.51	4.54	7.59%	$0.65	$1.95	6.14%
JD.com Inc	8.77	1.40	0.27	2.68%	$7.34	$56.64	22.4%
Vipshop Holdings Ltd	9.15	1.52	0.60	3.74%	$1.91	$6.05	-3.98%
Ollie's Bargain Outlet Holdings Inc	41.27	4.76	3.54	2.78%	$0.07	$0.24	13.35%
Dillard's Inc	13.99	4.12	1.22	3.85%	$0.26	$0.69	-0.71%
MINISO Group Holding Ltd	20.21	4.58	2.80	3.98%	$0.65	$1.96	18.89%
Macy's Inc	6.54	0.79	0.16	0.84%	$0.31	$2.0	-4.14%
Savers Value Village Inc	56.30	4.14	1.17	4.52%	$0.06	$0.23	7.9%
Kohl's Corp	12.22	0.39	0.09	-0.4%	$0.23	$1.4	-4.41%
Hour Loop Inc	51.67	7.61	0.39	18.14%	$0.0	$0.02	-3.45%
Average	33.57	5.45	1.9	4.57%	$3.62	$15.89	8.5%

By analyzing Amazon.com, we can infer the following trends:

Notably, the current Price to Earnings ratio for this stock, 33.83, is 1.01x above the industry norm, reflecting a higher valuation relative to the industry.
It could be trading at a premium in relation to its book value, as indicated by its Price to Book ratio of 7.09 which exceeds the industry average by 1.3x.
The Price to Sales ratio of 3.57, which is 1.88x the industry average, suggests the stock could potentially be overvalued in relation to its sales performance compared to its peers.
With a Return on Equity (ROE) of 5.68% that is 1.11% above the industry average, it appears that the company exhibits efficient use of equity to generate profits.
The company exhibits higher Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $36.6 Billion, which is 10.11x above the industry average, implying stronger profitability and robust cash flow generation.
Compared to its industry, the company has higher gross profit of $86.89 Billion, which indicates 5.47x above the industry average, indicating 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 8.5%.

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 light of the Debt-to-Equity ratio, a comparison between Amazon.com and its top 4 peers reveals the following information:

Amazon.com has a stronger financial position compared to its top 4 peers, as evidenced by its lower debt-to-equity ratio of 0.4.
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 a premium valuation. The high ROE, EBITDA, gross profit, and revenue growth further support Amazon.com's strong financial performance relative to industry competitors. This suggests that Amazon.com may be trading at a premium due to its robust financial metrics and growth potential.

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

AMZNAmazon.com Inc

$269.290.31%

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