APP vs. COST: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at APP and COST, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
COST’s market capitalization of 437.72 billion USD is significantly greater than APP’s 115.62 billion USD, highlighting its more substantial market valuation.
APP’s beta of 2.53 points to significantly higher volatility compared to COST (beta: 0.99), suggesting APP has greater potential for both gains and losses relative to market movements.
| Symbol | APP | COST |
|---|---|---|
| Company Name | AppLovin Corporation | Costco Wholesale Corporation |
| Country | US | US |
| Sector | Technology | Consumer Defensive |
| Industry | Software - Application | Discount Stores |
| CEO | Adam Arash Foroughi | Ron M. Vachris |
| Price | 341.64 USD | 987.02 USD |
| Market Cap | 115.62 billion USD | 437.72 billion USD |
| Beta | 2.53 | 0.99 |
| Exchange | NASDAQ | NASDAQ |
| IPO Date | April 15, 2021 | July 9, 1986 |
| ADR | No | No |
Historical Performance
This chart compares the performance of APP and COST by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.
Data is adjusted for dividends and splits.
Profitability
Return on Equity
APP
224.68%
Software - Application Industry
- Max
- 59.01%
- Q3
- 17.85%
- Median
- 4.73%
- Q1
- -10.56%
- Min
- -52.94%
APP’s Return on Equity of 224.68% is exceptionally high, placing it well beyond the typical range for the Software - Application industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.
COST
31.13%
Discount Stores Industry
- Max
- 31.68%
- Q3
- 28.60%
- Median
- 15.53%
- Q1
- 12.21%
- Min
- 12.12%
In the upper quartile for the Discount Stores industry, COST’s Return on Equity of 31.13% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
Return on Invested Capital
APP
48.77%
Software - Application Industry
- Max
- 35.07%
- Q3
- 9.72%
- Median
- 0.76%
- Q1
- -8.68%
- Min
- -34.12%
APP’s Return on Invested Capital of 48.77% is exceptionally high, placing it well beyond the typical range for the Software - Application industry. This demonstrates an outstanding ability to deploy capital efficiently and create significant value.
COST
20.02%
Discount Stores Industry
- Max
- 20.02%
- Q3
- 12.27%
- Median
- 11.13%
- Q1
- 6.51%
- Min
- 5.03%
In the upper quartile for the Discount Stores industry, COST’s Return on Invested Capital of 20.02% signifies a highly effective use of its capital to generate profits when compared to its peers.
Net Profit Margin
APP
37.39%
Software - Application Industry
- Max
- 48.14%
- Q3
- 16.07%
- Median
- 1.83%
- Q1
- -9.60%
- Min
- -45.64%
A Net Profit Margin of 37.39% places APP in the upper quartile for the Software - Application industry, signifying strong profitability and more effective cost management than most of its peers.
COST
2.92%
Discount Stores Industry
- Max
- 2.92%
- Q3
- 2.92%
- Median
- 2.81%
- Q1
- 2.75%
- Min
- 2.75%
COST’s Net Profit Margin of 2.92% is aligned with the median group of its peers in the Discount Stores industry. This indicates its ability to convert revenue into profit is typical for the sector.
Operating Profit Margin
APP
42.86%
Software - Application Industry
- Max
- 51.67%
- Q3
- 15.35%
- Median
- 1.79%
- Q1
- -12.42%
- Min
- -45.17%
An Operating Profit Margin of 42.86% places APP in the upper quartile for the Software - Application industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
COST
3.75%
Discount Stores Industry
- Max
- 5.42%
- Q3
- 5.42%
- Median
- 4.33%
- Q1
- 3.93%
- Min
- 2.10%
COST’s Operating Profit Margin of 3.75% is in the lower quartile for the Discount Stores industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.
Profitability at a Glance
| Symbol | APP | COST |
|---|---|---|
| Return on Equity (TTM) | 224.68% | 31.13% |
| Return on Assets (TTM) | 33.64% | 10.39% |
| Return on Invested Capital (TTM) | 48.77% | 20.02% |
| Net Profit Margin (TTM) | 37.39% | 2.92% |
| Operating Profit Margin (TTM) | 42.86% | 3.75% |
| Gross Profit Margin (TTM) | 77.40% | 13.38% |
Financial Strength
Current Ratio
APP
1.68
Software - Application Industry
- Max
- 5.09
- Q3
- 2.84
- Median
- 1.70
- Q1
- 1.12
- Min
- 0.04
APP’s Current Ratio of 1.68 aligns with the median group of the Software - Application industry, indicating that its short-term liquidity is in line with its sector peers.
COST
1.02
Discount Stores Industry
- Max
- 1.25
- Q3
- 1.23
- Median
- 1.02
- Q1
- 0.78
- Min
- 0.74
COST’s Current Ratio of 1.02 aligns with the median group of the Discount Stores industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio
APP
6.45
Software - Application Industry
- Max
- 1.85
- Q3
- 0.77
- Median
- 0.18
- Q1
- 0.05
- Min
- 0.00
With a Debt-to-Equity Ratio of 6.45, APP operates with exceptionally high leverage compared to the Software - Application industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.
COST
0.30
Discount Stores Industry
- Max
- 2.34
- Q3
- 1.40
- Median
- 0.80
- Q1
- 0.31
- Min
- 0.20
Falling into the lower quartile for the Discount Stores industry, COST’s Debt-to-Equity Ratio of 0.30 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
Interest Coverage Ratio
APP
7.41
Software - Application Industry
- Max
- 39.23
- Q3
- 8.55
- Median
- 1.48
- Q1
- -14.59
- Min
- -39.97
APP’s Interest Coverage Ratio of 7.41 is positioned comfortably within the norm for the Software - Application industry, indicating a standard and healthy capacity to cover its interest payments.
COST
916.73
Discount Stores Industry
- Max
- 18.46
- Q3
- 17.45
- Median
- 13.09
- Q1
- 10.49
- Min
- 1.08
With an Interest Coverage Ratio of 916.73, COST demonstrates a superior capacity to service its debt, placing it well above the typical range for the Discount Stores industry. This stems from either robust earnings or a conservative debt load.
Financial Strength at a Glance
| Symbol | APP | COST |
|---|---|---|
| Current Ratio (TTM) | 1.68 | 1.02 |
| Quick Ratio (TTM) | 1.68 | 0.52 |
| Debt-to-Equity Ratio (TTM) | 6.45 | 0.30 |
| Debt-to-Asset Ratio (TTM) | 0.65 | 0.11 |
| Net Debt-to-EBITDA Ratio (TTM) | 1.20 | -0.49 |
| Interest Coverage Ratio (TTM) | 7.41 | 916.73 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for APP and COST. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
APP
0.00%
Software - Application Industry
- Max
- 3.66%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
APP currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.
COST
0.48%
Discount Stores Industry
- Max
- 4.51%
- Q3
- 0.91%
- Median
- 0.49%
- Q1
- 0.00%
- Min
- 0.00%
COST’s Dividend Yield of 0.48% is consistent with its peers in the Discount Stores industry, providing a dividend return that is standard for its sector.
Dividend Payout Ratio
APP
0.00%
Software - Application Industry
- Max
- 81.09%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
APP has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.
COST
19.69%
Discount Stores Industry
- Max
- 44.99%
- Q3
- 36.65%
- Median
- 19.69%
- Q1
- 0.00%
- Min
- 0.00%
COST’s Dividend Payout Ratio of 19.69% is within the typical range for the Discount Stores industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | APP | COST |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.48% |
| Dividend Payout Ratio (TTM) | 0.00% | 19.69% |
Valuation
Price-to-Earnings Ratio
APP
60.47
Software - Application Industry
- Max
- 194.31
- Q3
- 98.56
- Median
- 51.87
- Q1
- 22.76
- Min
- 1.02
APP’s P/E Ratio of 60.47 is within the middle range for the Software - Application industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
COST
55.87
Discount Stores Industry
- Max
- 55.76
- Q3
- 45.00
- Median
- 33.38
- Q1
- 22.25
- Min
- 10.79
At 55.87, COST’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Discount Stores industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.
Forward P/E to Growth Ratio
APP
2.46
Software - Application Industry
- Max
- 15.44
- Q3
- 6.57
- Median
- 2.78
- Q1
- 0.55
- Min
- 0.00
APP’s Forward PEG Ratio of 2.46 is within the middle range of its peers in the Software - Application industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.
COST
5.06
Discount Stores Industry
- Max
- 5.06
- Q3
- 3.70
- Median
- 2.97
- Q1
- 2.24
- Min
- 1.25
A Forward PEG Ratio of 5.06 places COST in the upper quartile for the Discount Stores industry. This suggests the stock is potentially expensive compared to its peers relative to its growth forecast, which may warrant caution.
Price-to-Sales Ratio
APP
22.51
Software - Application Industry
- Max
- 23.49
- Q3
- 11.14
- Median
- 5.62
- Q1
- 2.84
- Min
- 0.33
APP’s P/S Ratio of 22.51 is in the upper echelon for the Software - Application industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
COST
1.63
Discount Stores Industry
- Max
- 2.07
- Q3
- 1.63
- Median
- 0.96
- Q1
- 0.64
- Min
- 0.43
COST’s P/S Ratio of 1.63 is in the upper echelon for the Discount Stores industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
Price-to-Book Ratio
APP
201.77
Software - Application Industry
- Max
- 21.03
- Q3
- 10.49
- Median
- 6.36
- Q1
- 2.89
- Min
- 0.12
The P/B Ratio is often not a primary valuation metric for the Software - Application industry.
COST
16.15
Discount Stores Industry
- Max
- 16.12
- Q3
- 9.30
- Median
- 5.40
- Q1
- 3.27
- Min
- 2.73
At 16.15, COST’s P/B Ratio is at an extreme premium to the Discount Stores industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.
Valuation at a Glance
| Symbol | APP | COST |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 60.47 | 55.87 |
| Forward PEG Ratio (TTM) | 2.46 | 5.06 |
| Price-to-Sales Ratio (P/S, TTM) | 22.51 | 1.63 |
| Price-to-Book Ratio (P/B, TTM) | 201.77 | 16.15 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 45.64 | 59.82 |
| EV-to-EBITDA (TTM) | 45.16 | 37.31 |
| EV-to-Sales (TTM) | 23.13 | 1.61 |