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BF-B vs COST

BF-B
Brown-Forman Corporation
NEUTRAL
Price
$27.57
Market Cap
$12.77B
Sector
Consumer Defensive
AI Confidence
68%
COST
Costco Wholesale Corporation
NEUTRAL
Price
$996.43
Market Cap
$442.28B
Sector
Consumer Defensive
AI Confidence
80%

Valuation

P/E Ratio
BF-B
16.31
COST
51.82
Forward P/E
BF-B
15.94
COST
44.4
P/B Ratio
BF-B
3.13
COST
13.78
P/S Ratio
BF-B
3.28
COST
1.55
EV/EBITDA
BF-B
12.86
COST
32.11

Profitability

Gross Margin
BF-B
59.11%
COST
12.93%
Operating Margin
BF-B
29.44%
COST
3.74%
Profit Margin
BF-B
20.83%
COST
2.99%
ROE
BF-B
20.67%
COST
29.65%
ROA
BF-B
8.21%
COST
8.72%

Growth

Revenue Growth
BF-B
-5.4%
COST
9.2%
Earnings Growth
BF-B
-13.9%
COST
13.9%

Financial Health

Debt/Equity
BF-B
0.64
COST
0.26
Current Ratio
BF-B
2.97
COST
1.06
Quick Ratio
BF-B
0.96
COST
0.54

Dividends

Dividend Yield
BF-B
3.26%
COST
0.52%
Payout Ratio
BF-B
52.98%
COST
27.04%

AI Verdict

BF-B NEUTRAL

The Advanced Deterministic Scorecard shows a Piotroski F-Score of 6/9, indicating stable financial health, but the absence of an Altman Z-Score limits distress risk assessment. Despite solid profitability metrics like a 29.44% operating margin and 20.67% ROE, the company faces declining revenue and earnings, with YoY revenue down 5.40% and earnings down 13.90%. The stock trades above the Graham Number of $18.30 at $27.57, supported by a 3.26% dividend yield and analyst target of $30.26, but weak recent earnings surprises and insider selling temper optimism.

Strengths
Strong profitability with operating margin of 29.44% and ROE of 20.67%, well above sector averages
Healthy balance sheet with a current ratio of 2.97 and moderate debt/equity of 0.64
Piotroski F-Score of 6 indicates stable financial condition
Risks
Revenue and earnings declining YoY by 5.40% and 13.90% respectively, signaling operational headwinds
Recent earnings misses: 0 out of last 4 quarters beat estimates, with an average surprise of -4.36%
Insider selling activity: CEO sold $0.15M in shares, indicating bearish sentiment
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

BF-B vs COST: Head-to-Head Comparison

This page compares Brown-Forman Corporation (BF-B) 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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