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COST vs MNST

COST
Costco Wholesale Corporation
NEUTRAL
Price
$996.43
Market Cap
$442.28B
Sector
Consumer Defensive
AI Confidence
80%
MNST
Monster Beverage Corporation
BULLISH
Price
$71.31
Market Cap
$69.67B
Sector
Consumer Defensive
AI Confidence
88%

Valuation

P/E Ratio
COST
51.82
MNST
40.52
Forward P/E
COST
44.4
MNST
38.13
P/B Ratio
COST
13.78
MNST
8.99
P/S Ratio
COST
1.55
MNST
8.74
EV/EBITDA
COST
32.11
MNST
26.99

Profitability

Gross Margin
COST
12.93%
MNST
55.81%
Operating Margin
COST
3.74%
MNST
30.74%
Profit Margin
COST
2.99%
MNST
21.65%
ROE
COST
29.65%
MNST
25.54%
ROA
COST
8.72%
MNST
16.88%

Growth

Revenue Growth
COST
9.2%
MNST
16.8%
Earnings Growth
COST
13.9%
MNST
39.5%

Financial Health

Debt/Equity
COST
0.26
MNST
0.01
Current Ratio
COST
1.06
MNST
3.19
Quick Ratio
COST
0.54
MNST
2.63

Dividends

Dividend Yield
COST
0.52%
MNST
--
Payout Ratio
COST
27.04%
MNST
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%
MNST BULLISH

Monster Beverage (MNST) trades near its 52-week high at $71.31, reflecting strong momentum across multiple timeframes—up 27.4% over the past year and 70.6% over five years—driven by exceptional earnings growth of 39.5% YoY and robust operating margins of 30.74%. Despite a premium valuation with a P/E of 40.52, significantly above the sector average of 18.17, the company’s superior profitability, clean balance sheet with near-zero leverage (Debt/Equity: 0.01), and accelerating top-line growth justify the multiple. While insider selling raises a cautionary note, analyst consensus remains firmly in 'buy' territory with a $72.23 target, implying modest upside. MNST continues to outperform key consumer defensive peers like TGT and CL on growth and margin expansion, reinforcing its elite execution within a mature sector.

Strengths
Exceptional YoY earnings growth of 39.5%, significantly outpacing sector average revenue growth of 3.47%
Industry-leading operating margin of 30.74% and gross margin of 55.81%, reflecting strong pricing power and cost discipline
Superior return metrics: ROE of 25.54% and ROA of 16.88%, well above sector averages despite lower leverage
Risks
Rich valuation: P/E of 40.52 is more than double the sector average of 18.17, increasing sensitivity to growth deceleration
Recent insider selling: CFO and Director sold $2.35M in shares, signaling potential lack of confidence at current levels
Earnings volatility: Only 2 of last 4 quarters beat estimates; prior streak included misses as large as -26.7% in 2022

Compare Another Pair

COST vs MNST: Head-to-Head Comparison

This page compares Costco Wholesale Corporation (COST) and Monster Beverage Corporation (MNST) 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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