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COST vs COTY

COST
Costco Wholesale Corporation
NEUTRAL
Price
$996.43
Market Cap
$442.28B
Sector
Consumer Defensive
AI Confidence
80%
COTY
Coty Inc.
BEARISH
Price
$2.42
Market Cap
$2.13B
Sector
Consumer Defensive
AI Confidence
85%

Valuation

P/E Ratio
COST
51.82
COTY
--
Forward P/E
COST
44.4
COTY
6.58
P/B Ratio
COST
13.78
COTY
0.6
P/S Ratio
COST
1.55
COTY
0.37
EV/EBITDA
COST
32.11
COTY
6.68

Profitability

Gross Margin
COST
12.93%
COTY
63.68%
Operating Margin
COST
3.74%
COTY
9.68%
Profit Margin
COST
2.99%
COTY
-9.13%
ROE
COST
29.65%
COTY
-12.59%
ROA
COST
8.72%
COTY
2.03%

Growth

Revenue Growth
COST
9.2%
COTY
0.5%
Earnings Growth
COST
13.9%
COTY
--

Financial Health

Debt/Equity
COST
0.26
COTY
0.83
Current Ratio
COST
1.06
COTY
0.79
Quick Ratio
COST
0.54
COTY
0.4

Dividends

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

AI Verdict

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%
COTY BEARISH

Coty Inc. exhibits severe fundamental weakness, highlighted by a Piotroski F-Score of 2/9, indicating poor financial health and operational deterioration. While valuation metrics like Price/Book (0.60) and Price/Sales (0.37) suggest the stock is deeply undervalued, this is likely a 'value trap' given the negative profit margins and stagnant revenue growth (0.50%). Liquidity is a primary concern with a Current Ratio of 0.79 and a Quick Ratio of 0.40, suggesting potential difficulty meeting short-term obligations. The consistent failure to meet earnings estimates (0/4 beats in the last year) further undermines confidence in management's guidance.

Strengths
Strong Gross Margin of 63.68%
Low Price-to-Book ratio (0.60) suggesting asset value support
Low Forward P/E (6.58) relative to sector averages
Risks
Critical financial health (Piotroski F-Score 2/9)
Severe liquidity risk (Quick Ratio 0.40)
Consistent earnings misses (Average surprise -27.09% over last 4 quarters)

Compare Another Pair

COST vs COTY: Head-to-Head Comparison

This page compares Costco Wholesale Corporation (COST) and Coty Inc. (COTY) 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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