No connection

Search Results

COST vs HRL

COST
Costco Wholesale Corporation
NEUTRAL
Price
$996.43
Market Cap
$442.28B
Sector
Consumer Defensive
AI Confidence
80%
HRL
Hormel Foods Corporation
BEARISH
Price
$21.47
Market Cap
$11.81B
Sector
Consumer Defensive
AI Confidence
85%

Valuation

P/E Ratio
COST
51.82
HRL
24.12
Forward P/E
COST
44.4
HRL
13.66
P/B Ratio
COST
13.78
HRL
1.49
P/S Ratio
COST
1.55
HRL
0.97
EV/EBITDA
COST
32.11
HRL
9.48

Profitability

Gross Margin
COST
12.93%
HRL
15.61%
Operating Margin
COST
3.74%
HRL
11.06%
Profit Margin
COST
2.99%
HRL
4.03%
ROE
COST
29.65%
HRL
6.12%
ROA
COST
8.72%
HRL
4.43%

Growth

Revenue Growth
COST
9.2%
HRL
-2.9%
Earnings Growth
COST
13.9%
HRL
-5.1%

Financial Health

Debt/Equity
COST
0.26
HRL
0.04
Current Ratio
COST
1.06
HRL
2.66
Quick Ratio
COST
0.54
HRL
1.3

Dividends

Dividend Yield
COST
0.52%
HRL
5.45%
Payout Ratio
COST
27.04%
HRL
130.62%

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%
HRL BEARISH

HRL exhibits a stark divergence between its balance sheet health and operational performance. While the Piotroski F-Score of 7/9 indicates strong financial health and the Debt/Equity ratio (0.04) is exemplary, the company is struggling with negative YoY revenue (-2.90%) and earnings growth (-5.10%). The current price of $21.47 trades at a premium to the Graham Number ($17.0) and significantly above the growth-based intrinsic value ($6.23). Most critically, the dividend payout ratio of 130.62% is unsustainable, suggesting a high risk of a dividend cut to align with actual earnings.

Strengths
Strong Piotroski F-Score (7/9) indicating robust short-term financial health
Extremely low leverage with a Debt/Equity ratio of 0.04
Excellent liquidity position with a Current Ratio of 2.66
Risks
Unsustainable dividend payout ratio (130.62%) exceeding net earnings
Persistent input cost inflation in pork, beef, and nut markets
Negative year-over-year growth in both revenue and earnings

Compare Another Pair

COST vs HRL: Head-to-Head Comparison

This page compares Costco Wholesale Corporation (COST) and Hormel Foods Corporation (HRL) 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.

Home
Terminal
AI Chat
Markets
Profile