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COST vs NWL

COST
Costco Wholesale Corporation
NEUTRAL
Price
$996.43
Market Cap
$442.28B
Sector
Consumer Defensive
AI Confidence
80%
NWL
Newell Brands Inc.
BEARISH
Price
$4.10
Market Cap
$1.74B
Sector
Consumer Defensive
AI Confidence
85%

Valuation

P/E Ratio
COST
51.82
NWL
--
Forward P/E
COST
44.4
NWL
6.2
P/B Ratio
COST
13.78
NWL
0.72
P/S Ratio
COST
1.55
NWL
0.24
EV/EBITDA
COST
32.11
NWL
8.67

Profitability

Gross Margin
COST
12.93%
NWL
33.81%
Operating Margin
COST
3.74%
NWL
6.96%
Profit Margin
COST
2.99%
NWL
-3.96%
ROE
COST
29.65%
NWL
-11.09%
ROA
COST
8.72%
NWL
2.81%

Growth

Revenue Growth
COST
9.2%
NWL
-2.7%
Earnings Growth
COST
13.9%
NWL
--

Financial Health

Debt/Equity
COST
0.26
NWL
2.26
Current Ratio
COST
1.06
NWL
1.07
Quick Ratio
COST
0.54
NWL
0.47

Dividends

Dividend Yield
COST
0.52%
NWL
6.83%
Payout Ratio
COST
27.04%
NWL
195.74%

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%
NWL BEARISH

NWL exhibits severe financial distress, anchored by a critical Piotroski F-Score of 2/9, indicating weak operational health. While valuation metrics like Price/Book (0.72) and Price/Sales (0.24) suggest the stock is 'cheap,' the company is trapped by negative profit margins, high leverage (Debt/Equity 2.26), and declining revenue. Most alarmingly, the dividend is completely unsustainable with a payout ratio of 195.74%, suggesting an imminent cut. The long-term price trajectory (-80.8% over 5 years) confirms a persistent value trap scenario.

Strengths
Low Price-to-Book ratio (0.72) suggesting trading below liquidation value
Very low Price-to-Sales ratio (0.24)
Positive operating margin (6.96%) despite negative net profit
Risks
Unsustainable dividend payout ratio (195.74%)
Severe financial health deterioration (Piotroski F-Score 2/9)
Poor short-term liquidity with a Quick Ratio of 0.47

Compare Another Pair

COST vs NWL: Head-to-Head Comparison

This page compares Costco Wholesale Corporation (COST) and Newell Brands Inc. (NWL) 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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