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COST vs FLO

COST
Costco Wholesale Corporation
NEUTRAL
Price
$996.43
Market Cap
$442.28B
Sector
Consumer Defensive
AI Confidence
80%
FLO
Flowers Foods, Inc.
BEARISH
Price
$8.80
Market Cap
$1.86B
Sector
Consumer Defensive
AI Confidence
85%

Valuation

P/E Ratio
COST
51.82
FLO
22.0
Forward P/E
COST
44.4
FLO
10.48
P/B Ratio
COST
13.78
FLO
1.41
P/S Ratio
COST
1.55
FLO
0.35
EV/EBITDA
COST
32.11
FLO
5.97

Profitability

Gross Margin
COST
12.93%
FLO
48.87%
Operating Margin
COST
3.74%
FLO
8.28%
Profit Margin
COST
2.99%
FLO
1.59%
ROE
COST
29.65%
FLO
6.18%
ROA
COST
8.72%
FLO
6.02%

Growth

Revenue Growth
COST
9.2%
FLO
6.8%
Earnings Growth
COST
13.9%
FLO
--

Financial Health

Debt/Equity
COST
0.26
FLO
1.11
Current Ratio
COST
1.06
FLO
0.75
Quick Ratio
COST
0.54
FLO
0.4

Dividends

Dividend Yield
COST
0.52%
FLO
11.25%
Payout Ratio
COST
27.04%
FLO
245.63%

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%
FLO BEARISH

FLO exhibits significant financial instability, characterized by a Piotroski F-Score of 4/9 (Stable/Weak) and a critical liquidity crisis with a Quick Ratio of 0.40. The most alarming metric is the dividend payout ratio of 245.63%, indicating an unsustainable dividend that likely requires capital erosion or debt to maintain. With the current price of $8.80 trading significantly above the growth-based intrinsic value of $2.80 and a bearish technical trend (0/100), the stock appears to be a dividend trap. Insider selling by the CEO further reinforces a negative outlook.

Strengths
Strong Gross Margin of 48.87%
Positive YoY Revenue Growth of 6.80%
Consistent history of beating quarterly earnings estimates
Risks
Unsustainable dividend payout ratio (245.63%)
Severe liquidity risk (Current Ratio 0.75, Quick Ratio 0.40)
Extreme valuation disconnect (Price $8.80 vs Intrinsic Value $2.80)

Compare Another Pair

COST vs FLO: Head-to-Head Comparison

This page compares Costco Wholesale Corporation (COST) and Flowers Foods, Inc. (FLO) 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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