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COST vs FMX

COST
Costco Wholesale Corporation
NEUTRAL
Price
$996.43
Market Cap
$442.28B
Sector
Consumer Defensive
AI Confidence
80%
FMX
Fomento Económico Mexicano, S.A.B. de C.V.
BEARISH
Price
$113.73
Market Cap
$39.3B
Sector
Consumer Defensive
AI Confidence
85%

Valuation

P/E Ratio
COST
51.82
FMX
38.16
Forward P/E
COST
44.4
FMX
21.35
P/B Ratio
COST
13.78
FMX
2.79
P/S Ratio
COST
1.55
FMX
0.05
EV/EBITDA
COST
32.11
FMX
6.36

Profitability

Gross Margin
COST
12.93%
FMX
40.62%
Operating Margin
COST
3.74%
FMX
9.52%
Profit Margin
COST
2.99%
FMX
2.31%
ROE
COST
29.65%
FMX
8.86%
ROA
COST
8.72%
FMX
5.2%

Growth

Revenue Growth
COST
9.2%
FMX
5.5%
Earnings Growth
COST
13.9%
FMX
63.5%

Financial Health

Debt/Equity
COST
0.26
FMX
0.78
Current Ratio
COST
1.06
FMX
1.35
Quick Ratio
COST
0.54
FMX
0.98

Dividends

Dividend Yield
COST
0.52%
FMX
5.89%
Payout Ratio
COST
27.04%
FMX
201.08%

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%
FMX BEARISH

FMX demonstrates strong operational health with a Piotroski F-Score of 7/9, but this is overshadowed by severe valuation concerns and unsustainable capital returns. The stock is trading at a significant premium to its Graham Number ($52.24) and Intrinsic Value ($87.91), with a PEG ratio of 6.46 indicating extreme overvaluation relative to growth. Most critically, the dividend payout ratio of 201.08% is unsustainable, and the company has failed to beat earnings estimates in the last four consecutive quarters. Despite a 'buy' analyst consensus, the combination of bearish technicals (10/100) and deteriorating earnings surprises suggests a high risk of correction.

Strengths
Strong operational health indicated by a Piotroski F-Score of 7/9
Robust gross margins of 40.62%
Manageable leverage with a Debt/Equity ratio of 0.78
Risks
Unsustainable dividend payout ratio of 201.08%
Severe overvaluation relative to Graham Number ($52.24) and Intrinsic Value ($87.91)
Poor recent earnings track record with 0/4 beats in the last 4 quarters

Compare Another Pair

COST vs FMX: Head-to-Head Comparison

This page compares Costco Wholesale Corporation (COST) and Fomento Económico Mexicano, S.A.B. de C.V. (FMX) 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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