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CL vs COST

CL
Colgate-Palmolive Company
NEUTRAL
Price
$78.05
Market Cap
$63.51B
Sector
Consumer Defensive
AI Confidence
72%
COST
Costco Wholesale Corporation
NEUTRAL
Price
$996.43
Market Cap
$442.28B
Sector
Consumer Defensive
AI Confidence
80%

Valuation

P/E Ratio
CL
21.86
COST
51.82
Forward P/E
CL
20.22
COST
44.4
P/B Ratio
CL
73.49
COST
13.78
P/S Ratio
CL
3.16
COST
1.55
EV/EBITDA
CL
14.6
COST
32.11

Profitability

Gross Margin
CL
60.15%
COST
12.93%
Operating Margin
CL
20.23%
COST
3.74%
Profit Margin
CL
14.47%
COST
2.99%
ROE
CL
293.63%
COST
29.65%
ROA
CL
15.34%
COST
8.72%

Growth

Revenue Growth
CL
1.9%
COST
9.2%
Earnings Growth
CL
1.1%
COST
13.9%

Financial Health

Debt/Equity
CL
6.8
COST
0.26
Current Ratio
CL
0.93
COST
1.06
Quick Ratio
CL
0.51
COST
0.54

Dividends

Dividend Yield
CL
2.66%
COST
0.52%
Payout Ratio
CL
57.14%
COST
27.04%

AI Verdict

CL NEUTRAL

Colgate-Palmolive (CL) trades at a slight discount to sector peers on P/E (21.86 vs 22.17) but faces meaningful headwinds from near-zero revenue growth (1.9% YoY) and deteriorating short-term momentum, with 1Y and 6M returns of -12.6% and -13.4%, respectively. The company maintains elite profitability—Gross Margin of 60.15%, Operating Margin of 20.23%, and ROE of 293.63%—supported by consistent earnings beats over the last 25 quarters, though recent Q/Q EPS growth has turned negative. Elevated leverage (Debt/Equity: 6.80) and weak liquidity (Current Ratio: 0.93) raise structural concerns, while the 2.66% dividend yield offers modest income appeal with a sustainable 57% payout ratio. Analysts are constructive with a $87.26 target implying ~12% upside, but lack of insider activity and stagnant top-line expansion cap near-term catalysts.

Strengths
Exceptional profitability: 60.15% gross margin and 20.23% operating margin, among the highest in consumer defensive sector
Outstanding ROE of 293.63%, reflecting aggressive leverage and efficient equity utilization
Consistent earnings outperformance: 22 out of last 25 quarters beat estimates, with 4-quarter average surprise of 3.78%
Risks
Anemic growth: Revenue up only 1.9% YoY and Q/Q EPS declining -1.1%, signaling stagnation
High financial leverage: Debt/Equity ratio of 6.80, significantly above safe thresholds and likely sector highs
Weak liquidity position: Current ratio of 0.93 and quick ratio of 0.51 indicate potential near-term solvency pressure
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

CL vs COST: Head-to-Head Comparison

This page compares Colgate-Palmolive Company (CL) 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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