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COST vs IMKTA

COST
Costco Wholesale Corporation
NEUTRAL
Price
$996.43
Market Cap
$442.28B
Sector
Consumer Defensive
AI Confidence
80%
IMKTA
Ingles Markets, Incorporated
NEUTRAL
Price
$94.04
Market Cap
$1.79B
Sector
Consumer Defensive
AI Confidence
80%

Valuation

P/E Ratio
COST
51.82
IMKTA
18.77
Forward P/E
COST
44.4
IMKTA
20.01
P/B Ratio
COST
13.78
IMKTA
1.09
P/S Ratio
COST
1.55
IMKTA
0.33
EV/EBITDA
COST
32.11
IMKTA
9.14

Profitability

Gross Margin
COST
12.93%
IMKTA
24.04%
Operating Margin
COST
3.74%
IMKTA
6.22%
Profit Margin
COST
2.99%
IMKTA
1.76%
ROE
COST
29.65%
IMKTA
5.94%
ROA
COST
8.72%
IMKTA
3.53%

Growth

Revenue Growth
COST
9.2%
IMKTA
3.4%
Earnings Growth
COST
13.9%
IMKTA
--

Financial Health

Debt/Equity
COST
0.26
IMKTA
0.77
Current Ratio
COST
1.06
IMKTA
3.36
Quick Ratio
COST
0.54
IMKTA
1.62

Dividends

Dividend Yield
COST
0.52%
IMKTA
0.7%
Payout Ratio
COST
27.04%
IMKTA
13.17%

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%
IMKTA NEUTRAL

IMKTA presents as a stable, low-risk value play with a Piotroski F-Score of 6/9, indicating stable financial health. While the stock is trading slightly below its Graham Number ($98.67), suggesting defensive fair value, there is a significant divergence from its growth-based intrinsic value ($35.07). The company maintains a superior balance sheet compared to sector averages, with strong liquidity and lower leverage, though it suffers from the razor-thin margins typical of the grocery industry. Recent price momentum is strong, but fundamental growth remains modest.

Strengths
Strong liquidity position with a Current Ratio of 3.36 and Quick Ratio of 1.62
Conservative leverage (Debt/Equity 0.77) compared to sector average (1.49)
Trading at a reasonable valuation relative to book value (P/B 1.09) and sales (P/S 0.33)
Risks
Extremely thin net profit margins (1.76%) leave little room for operational error
Low Return on Equity (5.94%) indicates inefficient capital utilization
Revenue growth (3.40%) lags behind the sector average (6.20%)

Compare Another Pair

COST vs IMKTA: Head-to-Head Comparison

This page compares Costco Wholesale Corporation (COST) and Ingles Markets, Incorporated (IMKTA) 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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