"B2B vs. B2C"

“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. 

  **********   Source: PitchBook  B2B company list: Alphabet, Berkshire Hathaway, GE, Verizon, FB, Alibaba, UPS, 3M, United Tech, Mastercard, Honeywell, Boeing, Lockheed Martin, Mondelez, Union Pacific, Danaher, Caterpillar, Dow Chemical, Accenture, Monsanto, ADP, Northrop Grumman, FedEx, General Dynamics, ABB Group.    B2C company list: FB, Amazon, Johnson & Johnson, PG, Walmart, CocaCola, Alibaba, Home Depot, Walt Disney, Philip Morris, Pepsico, Comcast, Altria, McDonalds, CVS, 3M, Nike, Kraft, Walgreens, Starbucks, LVMH, American Beverage, Daimler, Mondelez, Lowes.


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Source: PitchBook

B2B company list: Alphabet, Berkshire Hathaway, GE, Verizon, FB, Alibaba, UPS, 3M, United Tech, Mastercard, Honeywell, Boeing, Lockheed Martin, Mondelez, Union Pacific, Danaher, Caterpillar, Dow Chemical, Accenture, Monsanto, ADP, Northrop Grumman, FedEx, General Dynamics, ABB Group.

B2C company list: FB, Amazon, Johnson & Johnson, PG, Walmart, CocaCola, Alibaba, Home Depot, Walt Disney, Philip Morris, Pepsico, Comcast, Altria, McDonalds, CVS, 3M, Nike, Kraft, Walgreens, Starbucks, LVMH, American Beverage, Daimler, Mondelez, Lowes.