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COST vs DEO

COST
Costco Wholesale Corporation
NEUTRAL
Price
$996.43
Market Cap
$442.28B
Sector
Consumer Defensive
AI Confidence
80%
DEO
Diageo plc
BEARISH
Price
$79.29
Market Cap
$44.08B
Sector
Consumer Defensive
AI Confidence
85%

Valuation

P/E Ratio
COST
51.82
DEO
18.31
Forward P/E
COST
44.4
DEO
12.32
P/B Ratio
COST
13.78
DEO
68.44
P/S Ratio
COST
1.55
DEO
2.23
EV/EBITDA
COST
32.11
DEO
32.41

Profitability

Gross Margin
COST
12.93%
DEO
60.0%
Operating Margin
COST
3.74%
DEO
31.29%
Profit Margin
COST
2.99%
DEO
12.19%
ROE
COST
29.65%
DEO
19.72%
ROA
COST
8.72%
DEO
7.21%

Growth

Revenue Growth
COST
9.2%
DEO
-4.0%
Earnings Growth
COST
13.9%
DEO
2.9%

Financial Health

Debt/Equity
COST
0.26
DEO
1.77
Current Ratio
COST
1.06
DEO
1.6
Quick Ratio
COST
0.54
DEO
0.57

Dividends

Dividend Yield
COST
0.52%
DEO
4.19%
Payout Ratio
COST
27.04%
DEO
95.64%

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%
DEO BEARISH

Despite a strong Piotroski F-Score of 7/9 indicating operational stability, DEO is exhibiting severe fundamental decay and technical weakness. The stock is trading at a significant premium to both its Graham Number ($10.62) and Intrinsic Value ($49.15), while facing a catastrophic collapse in earnings growth (-62.3% YoY EPS). A dividend payout ratio of 95.64% is unsustainable given the negative revenue growth and crashing quarterly EPS, suggesting a high risk of a dividend cut. The technical trend is completely bearish (0/100), and long-term price performance is dismal (-49.1% over 5 years).

Strengths
Strong Piotroski F-Score (7/9) suggesting solid short-term financial health
High Gross Margins (60.00%) and Operating Margins (31.29%)
Robust Return on Equity (ROE) of 19.72%
Risks
Unsustainable dividend payout ratio (95.64%)
Severe earnings contraction (-78.6% Q/Q EPS growth)
Negative revenue growth (-4.00% YoY)

Compare Another Pair

COST vs DEO: Head-to-Head Comparison

This page compares Costco Wholesale Corporation (COST) and Diageo plc (DEO) 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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