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COST vs HNST

COST
Costco Wholesale Corporation
NEUTRAL
Price
$996.43
Market Cap
$442.28B
Sector
Consumer Defensive
AI Confidence
80%
HNST
The Honest Company, Inc.
BEARISH
Price
$2.92
Market Cap
$328.4M
Sector
Consumer Defensive
AI Confidence
85%

Valuation

P/E Ratio
COST
51.82
HNST
--
Forward P/E
COST
44.4
HNST
19.47
P/B Ratio
COST
13.78
HNST
1.94
P/S Ratio
COST
1.55
HNST
0.88
EV/EBITDA
COST
32.11
HNST
25.99

Profitability

Gross Margin
COST
12.93%
HNST
38.67%
Operating Margin
COST
3.74%
HNST
1.27%
Profit Margin
COST
2.99%
HNST
-4.22%
ROE
COST
29.65%
HNST
-9.12%
ROA
COST
8.72%
HNST
1.8%

Growth

Revenue Growth
COST
9.2%
HNST
-11.8%
Earnings Growth
COST
13.9%
HNST
--

Financial Health

Debt/Equity
COST
0.26
HNST
0.08
Current Ratio
COST
1.06
HNST
3.98
Quick Ratio
COST
0.54
HNST
2.43

Dividends

Dividend Yield
COST
0.52%
HNST
--
Payout Ratio
COST
27.04%
HNST
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%
HNST BEARISH

The Honest Company exhibits significant fundamental weakness, highlighted by a Piotroski F-Score of 2/9, indicating poor financial health and deteriorating operational efficiency. While the company maintains a strong liquidity position with a current ratio of 3.98 and very low debt, these are offset by a concerning -11.80% YoY revenue decline and negative profit margins. Heavy insider selling by the CEO and other officers, combined with a 0/100 technical trend, suggests a lack of confidence in near-term recovery. Despite a low Price/Sales ratio of 0.88, the lack of growth and poor health scores make the current valuation a value trap.

Strengths
Very low Debt/Equity ratio (0.08)
Strong short-term liquidity (Current Ratio 3.98)
Healthy Gross Margin (38.67%)
Risks
Negative revenue growth (-11.80% YoY)
Weak Piotroski F-Score (2/9) indicating fundamental decay
Aggressive insider selling (9 sell transactions, 0 buys)

Compare Another Pair

COST vs HNST: Head-to-Head Comparison

This page compares Costco Wholesale Corporation (COST) and The Honest Company, Inc. (HNST) 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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