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COST vs LWAY

COST
Costco Wholesale Corporation
NEUTRAL
Price
$996.43
Market Cap
$442.28B
Sector
Consumer Defensive
AI Confidence
80%
LWAY
Lifeway Foods, Inc.
BEARISH
Price
$24.40
Market Cap
$371.6M
Sector
Consumer Defensive
AI Confidence
85%

Valuation

P/E Ratio
COST
51.82
LWAY
27.42
Forward P/E
COST
44.4
LWAY
17.81
P/B Ratio
COST
13.78
LWAY
4.33
P/S Ratio
COST
1.55
LWAY
1.75
EV/EBITDA
COST
32.11
LWAY
18.09

Profitability

Gross Margin
COST
12.93%
LWAY
29.01%
Operating Margin
COST
3.74%
LWAY
6.8%
Profit Margin
COST
2.99%
LWAY
6.52%
ROE
COST
29.65%
LWAY
17.57%
ROA
COST
8.72%
LWAY
10.31%

Growth

Revenue Growth
COST
9.2%
LWAY
18.0%
Earnings Growth
COST
13.9%
LWAY
--

Financial Health

Debt/Equity
COST
0.26
LWAY
0.01
Current Ratio
COST
1.06
LWAY
2.23
Quick Ratio
COST
0.54
LWAY
1.35

Dividends

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

LWAY exhibits a weak Piotroski F-Score of 3/9, indicating deteriorating fundamental health despite a clean balance sheet. The stock is trading at a severe premium to both its Graham Number ($10.62) and Intrinsic Value ($6.23), suggesting the current price of $24.40 is speculative. While revenue growth is strong at 18%, consistent earnings misses and aggressive insider selling signal a lack of confidence in the current valuation.

Strengths
Extremely low leverage (Debt/Equity 0.01)
Strong liquidity position (Current Ratio 2.23)
Robust top-line growth (18% YoY Revenue Growth)
Risks
Severe overvaluation relative to defensive fair value (Graham Number)
Weak fundamental health score (Piotroski 3/9)
Poor earnings track record (only 1 of last 4 quarters beat estimates)

Compare Another Pair

COST vs LWAY: Head-to-Head Comparison

This page compares Costco Wholesale Corporation (COST) and Lifeway Foods, Inc. (LWAY) 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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