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COST vs HLF

COST
Costco Wholesale Corporation
NEUTRAL
Price
$996.43
Market Cap
$442.28B
Sector
Consumer Defensive
AI Confidence
80%
HLF
Herbalife Ltd.
NEUTRAL
Price
$16.46
Market Cap
$1.7B
Sector
Consumer Defensive
AI Confidence
85%

Valuation

P/E Ratio
COST
51.82
HLF
7.48
Forward P/E
COST
44.4
HLF
5.27
P/B Ratio
COST
13.78
HLF
-3.3
P/S Ratio
COST
1.55
HLF
0.34
EV/EBITDA
COST
32.11
HLF
5.72

Profitability

Gross Margin
COST
12.93%
HLF
77.87%
Operating Margin
COST
3.74%
HLF
8.33%
Profit Margin
COST
2.99%
HLF
4.53%
ROE
COST
29.65%
HLF
--
ROA
COST
8.72%
HLF
11.27%

Growth

Revenue Growth
COST
9.2%
HLF
6.3%
Earnings Growth
COST
13.9%
HLF
-53.3%

Financial Health

Debt/Equity
COST
0.26
HLF
--
Current Ratio
COST
1.06
HLF
1.13
Quick Ratio
COST
0.54
HLF
0.45

Dividends

Dividend Yield
COST
0.52%
HLF
--
Payout Ratio
COST
27.04%
HLF
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%
HLF NEUTRAL

HLF presents a complex profile characterized by a strong Piotroski F-Score of 7/9, indicating operational improvement, contrasted against a critical structural red flag: a negative Price/Book ratio (-3.30) suggesting negative shareholders' equity. While valuation metrics are highly attractive with a P/E of 7.48 and a PEG of 0.61, these are overshadowed by a severe -53.3% collapse in year-over-year earnings growth. The stock is currently trading at $16.46, slightly above its growth-based intrinsic value of $15.40. Consequently, the company appears to be a deep-value play with significant balance sheet risks and inconsistent earnings quality.

Strengths
Strong operational health indicated by a Piotroski F-Score of 7/9
Very high gross margins (77.87%) providing significant pricing power
Deeply undervalued on a relative basis (P/E 7.48, PEG 0.61)
Risks
Negative shareholders' equity as evidenced by the -3.30 Price/Book ratio
Severe earnings contraction (-53.3% YoY growth)
Poor short-term liquidity with a Quick Ratio of 0.45

Compare Another Pair

COST vs HLF: Head-to-Head Comparison

This page compares Costco Wholesale Corporation (COST) and Herbalife Ltd. (HLF) 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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