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COST vs KDP

COST
Costco Wholesale Corporation
NEUTRAL
Price
$996.43
Market Cap
$442.28B
Sector
Consumer Defensive
AI Confidence
80%
KDP
Keurig Dr Pepper Inc.
BEARISH
Price
$26.54
Market Cap
$36.06B
Sector
Consumer Defensive
AI Confidence
85%

Valuation

P/E Ratio
COST
51.82
KDP
17.35
Forward P/E
COST
44.4
KDP
10.59
P/B Ratio
COST
13.78
KDP
1.41
P/S Ratio
COST
1.55
KDP
2.17
EV/EBITDA
COST
32.11
KDP
12.15

Profitability

Gross Margin
COST
12.93%
KDP
54.2%
Operating Margin
COST
3.74%
KDP
22.63%
Profit Margin
COST
2.99%
KDP
12.52%
ROE
COST
29.65%
KDP
8.36%
ROA
COST
8.72%
KDP
4.26%

Growth

Revenue Growth
COST
9.2%
KDP
10.5%
Earnings Growth
COST
13.9%
KDP
--

Financial Health

Debt/Equity
COST
0.26
KDP
0.75
Current Ratio
COST
1.06
KDP
0.64
Quick Ratio
COST
0.54
KDP
0.33

Dividends

Dividend Yield
COST
0.52%
KDP
3.47%
Payout Ratio
COST
27.04%
KDP
60.13%

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%
KDP BEARISH

KDP exhibits significant fundamental deterioration, highlighted by a weak Piotroski F-Score of 3/9 and a severe YoY EPS contraction of -55.2%. While revenue growth remains healthy at 10.5%, the disconnect between top-line growth and bottom-line collapse suggests escalating operational inefficiencies or rising costs. The stock is currently trading above its Graham Number ($25.43) and significantly above its growth-based intrinsic value ($10.71), while liquidity ratios (Current Ratio 0.64) indicate potential short-term financial stress.

Strengths
Strong Gross Margin of 54.20%
Consistent Revenue Growth (10.5% YoY)
Attractive Forward P/E of 10.59
Risks
Severe Earnings Collapse (-55.2% YoY EPS growth)
Poor Liquidity (Quick Ratio of 0.33 indicates high risk of short-term obligations)
Weak Financial Health (Piotroski F-Score 3/9)

Compare Another Pair

COST vs KDP: Head-to-Head Comparison

This page compares Costco Wholesale Corporation (COST) and Keurig Dr Pepper Inc. (KDP) 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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