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AVO vs COST

AVO
Mission Produce, Inc.
NEUTRAL
Price
$13.46
Market Cap
$953.5M
Sector
Consumer Defensive
AI Confidence
65%
COST
Costco Wholesale Corporation
NEUTRAL
Price
$996.43
Market Cap
$442.28B
Sector
Consumer Defensive
AI Confidence
80%

Valuation

P/E Ratio
AVO
25.4
COST
51.82
Forward P/E
AVO
16.72
COST
44.4
P/B Ratio
AVO
1.62
COST
13.78
P/S Ratio
AVO
0.69
COST
1.55
EV/EBITDA
AVO
11.19
COST
32.11

Profitability

Gross Margin
AVO
11.57%
COST
12.93%
Operating Margin
AVO
8.78%
COST
3.74%
Profit Margin
AVO
2.71%
COST
2.99%
ROE
AVO
6.77%
COST
29.65%
ROA
AVO
4.18%
COST
8.72%

Growth

Revenue Growth
AVO
-10.0%
COST
9.2%
Earnings Growth
AVO
-4.2%
COST
13.9%

Financial Health

Debt/Equity
AVO
0.32
COST
0.26
Current Ratio
AVO
1.95
COST
1.06
Quick Ratio
AVO
1.25
COST
0.54

Dividends

Dividend Yield
AVO
--
COST
0.52%
Payout Ratio
AVO
0.0%
COST
27.04%

AI Verdict

AVO NEUTRAL

The company exhibits a weak financial health profile with a Piotroski F-Score of 4/9, indicating borderline stability. Despite this, Mission Produce has demonstrated strong recent earnings surprises and positive short-term momentum, with a bullish analyst recommendation and significant EPS growth acceleration. However, declining revenue, low profitability margins, and lack of Altman Z-Score data raise concerns about long-term sustainability. The stock trades above its Graham Number of $9.96 at $13.46, suggesting potential overvaluation relative to defensive value standards, though forward P/E of 16.72 implies improving earnings expectations.

Strengths
Strong recent earnings surprise streak: 3 out of last 4 quarters beat estimates with an average surprise of 77.42%
Improving earnings momentum: YoY EPS growth of +10.7% and Q/Q EPS growth of +19.2%
Healthy balance sheet: Current ratio of 1.95 and quick ratio of 1.25 indicate solid short-term liquidity
Risks
Weak Piotroski F-Score of 4/9 suggests suboptimal financial health and limited strength across profitability, leverage, and operating efficiency
Revenue contraction: YoY revenue growth of -10.00% indicates top-line pressure despite earnings growth
Low profitability: Profit margin of 2.71% and ROE of 6.77% lag significantly behind sector averages of 0.36% and 26.66% respectively
COST NEUTRAL

COST shows neutral fundamentals based on deterministic rules. Financial strength is stable (F-Score 4/9). Mixed signals with both opportunities and risks present.

Strengths
Low debt with D/E ratio of 0.26
Strong ROE of 29.7%
Risks
High valuation with P/E of 51.8
Premium vs Graham Number ($176.89)
Low profit margin of 3.0%

Compare Another Pair

AVO vs COST: Head-to-Head Comparison

This page compares Mission Produce, Inc. (AVO) and Costco Wholesale Corporation (COST) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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