In the dynamic and cutthroat world of business, conducting thorough company analysis is essential 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 | 34.72 | 7.40 | 3.52 | 5.79% | $36.48 | $78.69 | 8.62% |
| Alibaba Group Holding Ltd | 16.12 | 2.04 | 2.09 | 1.23% | $59.0 | $117.63 | -15.6% |
| PDD Holdings Inc | 11.06 | 3.19 | 2.72 | 4.59% | $16.09 | $54.73 | 10.21% |
| MercadoLibre Inc | 58.72 | 24.18 | 5.41 | 10.56% | $0.92 | $2.77 | 36.97% |
| Coupang Inc | 202 | 11.74 | 1.67 | 2.53% | $0.36 | $2.32 | 11.16% |
| JD.com Inc | 8.21 | 1.49 | 0.31 | 4.6% | $14.27 | $47.85 | 15.78% |
| eBay Inc | 18.72 | 7.25 | 3.70 | 9.95% | $0.77 | $1.86 | 1.13% |
| Vipshop Holdings Ltd | 7.75 | 1.38 | 0.53 | 4.85% | $2.45 | $6.08 | -4.98% |
| Ollie's Bargain Outlet Holdings Inc | 34.50 | 3.98 | 2.96 | 2.78% | $0.07 | $0.24 | 13.35% |
| Dillard's Inc | 11.16 | 3.39 | 0.98 | 8.97% | $0.26 | $0.69 | -1.64% |
| MINISO Group Holding Ltd | 16.95 | 3.85 | 2.35 | 3.98% | $0.65 | $1.96 | 18.89% |
| Macy's Inc | 6.14 | 0.74 | 0.15 | 0.84% | $0.31 | $2.0 | -4.14% |
| Savers Value Village Inc | 77.07 | 4.05 | 1.15 | -1.13% | $0.03 | $0.2 | 4.51% |
| Kohl's Corp | 8.06 | 0.26 | 0.06 | -0.4% | $0.23 | $1.4 | -4.41% |
| Hour Loop Inc | 125 | 7.56 | 0.32 | 11.93% | $0.0 | $0.01 | 4.68% |
| Average | 42.96 | 5.36 | 1.74 | 4.66% | $6.82 | $17.12 | 6.14% |
When conducting a detailed analysis of Amazon.com, the following trends become clear:
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The Price to Earnings ratio of 34.72 is 0.81x lower than the industry average, indicating potential undervaluation for the stock.
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It could be trading at a premium in relation to its book value, as indicated by its Price to Book ratio of 7.4 which exceeds the industry average by 1.38x.
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The Price to Sales ratio of 3.52, which is 2.02x the industry average, suggests the stock could potentially be overvalued in relation to its sales performance compared to its peers.
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The company has a higher Return on Equity (ROE) of 5.79%, which is 1.13% above the industry average. This suggests efficient use of equity to generate profits and demonstrates profitability and growth potential.
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The company has higher Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $36.48 Billion, which is 5.35x above the industry average, indicating stronger profitability and robust cash flow generation.
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The gross profit of $78.69 Billion is 4.6x above that of its industry, highlighting stronger profitability and higher earnings from its core operations.
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The company's revenue growth of 8.62% is notably higher compared to the industry average of 6.14%, showcasing exceptional sales performance and strong demand for its products or services.
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.
In light of the Debt-to-Equity ratio, a comparison between Amazon.com and its top 4 peers reveals the following information:
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Amazon.com is in a relatively stronger financial position compared to its top 4 peers, as evidenced by its lower debt-to-equity ratio of 0.44.
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This implies that the company relies less on debt financing and has a more favorable balance between debt and equity.
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. Amazon.com's high ROE, EBITDA, gross profit, and revenue growth outperform 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.
Latest Ratings for AMZN
| Date | Firm | Action | From | To |
|---|---|---|---|---|
| Jun 2025 | JP Morgan | Maintains | Overweight | Overweight |
| Jun 2025 | B of A Securities | Maintains | Buy | Buy |
| May 2025 | Tigress Financial | Maintains | Buy | Buy |
View More Analyst Ratings for AMZN
View the Latest Analyst Ratings
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