“B2B” VS “B2C”
I looked at the top 25 B2B and B2C companies by market cap and found some interesting factoids. While B2B businesses are more stable, typically with a recurring revenue component, it appears that the top B2C companies end up performing better with higher median margins. B2C companies tend to trade at a higher multiple, but also tend to be over-valued (P/E of 23.1x over 18.5x for B2B companies). B2B companies are more efficient with median revenue / employee at $362K versus $338K for B2C businesses and higher median return on invested capital and on equity.