In today's fast-paced and highly competitive business world, it is crucial for investors and industry followers to conduct comprehensive company evaluations. In this article, we will delve into an extensive industry comparison, evaluating Amazon.com (NASDAQ:AMZN) in relation to its major competitors in the Broadline Retail industry. By closely examining key financial metrics, market standing, and growth prospects, our objective is to provide valuable insights and highlight 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 74% of total, followed by Amazon Web Services (17%), and advertising services (9%). International segments constitute 22% of Amazon's total revenue, 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 | 31.17 | 6.38 | 3.45 | 6.02% | $45.5 | $91.5 | 13.4% |
| Alibaba Group Holding Ltd | 17.62 | 2.56 | 2.61 | 4.26% | $53.52 | $111.22 | 1.82% |
| PDD Holdings Inc | 11.68 | 2.92 | 2.85 | 8.89% | $25.79 | $58.13 | 7.14% |
| MercadoLibre Inc | 47.64 | 15.91 | 3.78 | 7.06% | $0.88 | $3.21 | 39.48% |
| Sea Ltd | 57.35 | 7.63 | 3.94 | 3.77% | $0.48 | $2.6 | 38.3% |
| Coupang Inc | 126.95 | 10.27 | 1.48 | 2.02% | $0.32 | $2.72 | 17.81% |
| JD.com Inc | 9.67 | 1.26 | 0.24 | 2.3% | $7.36 | $50.47 | 14.85% |
| eBay Inc | 17.92 | 7.74 | 3.58 | 13.35% | $0.74 | $2.0 | 9.47% |
| Vipshop Holdings Ltd | 9.95 | 1.62 | 0.65 | 3.74% | $1.91 | $6.05 | -3.98% |
| Dillard's Inc | 16.62 | 4.66 | 1.45 | 6.55% | $0.14 | $0.58 | -2.93% |
| Ollie's Bargain Outlet Holdings Inc | 36.04 | 4.27 | 3.15 | 3.49% | $0.09 | $0.27 | 17.49% |
| Global E Online Ltd | 897.50 | 6.53 | 7.03 | 1.17% | $0.02 | $0.1 | 27.9% |
| MINISO Group Holding Ltd | 18.40 | 3.90 | 2.32 | 4.56% | $0.73 | $2.2 | 23.07% |
| Macy's Inc | 11.43 | 1.21 | 0.25 | 1.95% | $0.36 | $2.1 | -1.9% |
| Kohl's Corp | 8.45 | 0.45 | 0.11 | 3.97% | $0.45 | $1.53 | -4.98% |
| Hour Loop Inc | 62 | 8.53 | 0.46 | 7.15% | $0.0 | $0.02 | 7.56% |
| Average | 89.95 | 5.3 | 2.26 | 4.95% | $6.19 | $16.21 | 12.74% |
When closely examining Amazon.com, the following trends emerge:
-
With a Price to Earnings ratio of 31.17, which is 0.35x less than the industry average, the stock shows potential for growth at a reasonable price, making it an interesting consideration for market participants.
-
With a Price to Book ratio of 6.38, which is 1.2x 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.
-
With a relatively high Price to Sales ratio of 3.45, which is 1.53x the industry average, the stock might be considered overvalued based on sales performance.
-
With a Return on Equity (ROE) of 6.02% that is 1.07% above the industry average, it appears that the company exhibits efficient use of equity to generate profits.
-
Compared to its industry, the company has higher Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $45.5 Billion, which is 7.35x above the industry average, indicating stronger profitability and robust cash flow generation.
-
Compared to its industry, the company has higher gross profit of $91.5 Billion, which indicates 5.64x 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 13.4%, outperforming the industry average of 12.74%.
Debt To Equity Ratio
The debt-to-equity (D/E) ratio helps evaluate the capital structure and financial leverage of a company.
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:
-
When considering the debt-to-equity ratio, Amazon.com exhibits a stronger financial position compared to its top 4 peers.
-
This indicates that the company has a favorable balance between debt and equity, with a lower debt-to-equity ratio of 0.37, which can be perceived as a positive aspect by investors.
Key Takeaways
The low P/E ratio suggests Amazon.com may be undervalued compared to its peers in the Broadline Retail industry. However, the high P/B and P/S ratios indicate that the market values the company's assets and sales more highly. Amazon.com's high ROE, EBITDA, gross profit, and revenue growth reflect strong financial performance relative to 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.
