Amazon vs Peers: Key Metrics Comparison

In today's rapidly evolving and highly competitive business environment, a comprehensive company assessment is crucial for investors and industry analysts. This article provides an in-depth industry comparison, evaluating Amazon against its major competitors in the comprehensive retail sector. By closely examining key financial metrics, market positioning, and growth potential, we aim to offer valuable insights and reveal the company's performance within the industry.

Amazon Company Profile

Amazon is a leading online retailer and third-party seller platform. Retail-related revenue accounts for approximately 74% of total revenue, followed by Amazon Web Services and advertising services. The international business segment contributes about 22% of total revenue, led by Germany, the UK, and Japan.

Company | P/E Ratio | P/B Ratio | P/S Ratio | ROE | EBITDA | Gross Profit | Revenue Growth
--- | --- | --- | --- | --- | --- | --- | ---
Amazon.com Inc | 20.94 | 5.09 | 3.65 | 12.61% | $102.16 | $104.83 | 19.62%
MercadoLibre Inc | 53.06 | 12.62 | 2.81 | 6.17% | $0.96 | $4.16 | 49.76%
eBay Inc | 21.89 | 9.94 | 3.99 | 12.12% | $0.83 | $2.3 | 14.8%
Dillard's Inc | 14.48 | 4.65 | 1.49 | 4.71% | $0.27 | $0.72 | -3.66%
Global E Online Ltd | 44.44 | 7.27 | 6.31 | 5.26% | $0.05 | $0.13 | 39.15%
Macy's Inc | 9.43 | 1.24 | 0.28 | 1.3% | $0.33 | $2.03 | 2.07%
Ollie's Bargain Outlet Holdings Inc | 18.38 | 2.38 | 1.68 | 2.99% | $0.09 | $0.28 | 14.25%
Kohl's Corp | 7.70 | 0.49 | 0.13 | -0.35% | $0.22 | $1.36 | -2.04%
Savers Value Village Inc | 72.27 | 3.74 | 1 | 4.95% | $0.07 | $0.25 | 7.43%
Hour Loop Inc | 46.50 | 7.37 | 0.43 | 12.6% | $0.0 | $0.02 | 25.24%
Average | 32.02 | 5.52 | 2.01 | 5.53% | $0.31 | $1.25 | 16.33%

Analysis of Amazon

The stock's P/E ratio of 20.94 is 0.65 times lower than the industry average, suggesting potential value in the eyes of market participants.

The current P/B ratio of 5.09 is 0.92 times the industry average, significantly below it, indicating the stock may be undervalued.

The relatively high P/S ratio of 3.65 exceeds the industry average by 1.82 times, which may suggest the stock is overvalued based on sales performance.

The ROE of 12.61% is 7.08 percentage points higher than the industry average, highlighting the company's efficiency in generating profits from shareholder equity.

With a higher EBITDA of $102.16 billion, which is 329.55 times the industry average, the company demonstrates stronger profitability and robust cash flow generation capabilities.

Compared to the industry, the company has a higher gross profit of $104.83 billion, which is 83.86 times the industry average, indicating stronger core business profitability and higher earnings.

The company's revenue growth rate of 19.62% exceeds the industry average by 16.33 percentage points, showcasing strong sales performance and market leadership.

Debt-to-Equity Ratio

The debt-to-equity ratio helps assess a company's capital structure and financial leverage.

When considering the debt-to-equity ratio in an industry comparison, it provides a concise evaluation of a company's financial health and risk profile.

Comparing Amazon with its top 4 industry peers on the debt-to-equity ratio, the following is evident:

Amazon demonstrates a stronger financial position than its top 4 industry peers, as indicated by its lower debt-to-equity ratio of 0.4.

This implies the company maintains a more favorable balance between debt and equity, which can be viewed as a positive factor for investors.

Key Takeaways

For Amazon, the P/E and P/B ratios suggest the stock is undervalued compared to peers in the comprehensive retail industry. However, the high P/S ratio indicates the stock may be overvalued based on revenue. In terms of ROE, EBITDA, gross profit, and revenue growth, Amazon outperforms its industry peers, reflecting strong financial performance and growth potential.

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