AZN vs. COST: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AZN and COST, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
AZN’s market capitalization stands at 430.65 billion USD, while COST’s is 437.72 billion USD, indicating their market valuations are broadly comparable.
COST carries a higher beta at 0.99, indicating it’s more sensitive to market moves, while AZN (beta: 0.17) exhibits greater stability.
AZN trades as an American Depositary Receipt (ADR), offering U.S. investors a convenient way to access its foreign-listed shares. In contrast, COST is a standard domestic listing.
| Symbol | AZN | COST |
|---|---|---|
| Company Name | AstraZeneca PLC | Costco Wholesale Corporation |
| Country | GB | US |
| Sector | Healthcare | Consumer Defensive |
| Industry | Drug Manufacturers - General | Discount Stores |
| CEO | Pascal Claude Roland Soriot | Ron M. Vachris |
| Price | 69.45 USD | 987.02 USD |
| Market Cap | 430.65 billion USD | 437.72 billion USD |
| Beta | 0.17 | 0.99 |
| Exchange | NASDAQ | NASDAQ |
| IPO Date | May 12, 1993 | July 9, 1986 |
| ADR | Yes | No |
Historical Performance
This chart compares the performance of AZN 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
AZN
19.18%
Drug Manufacturers - General Industry
- Max
- 95.59%
- Q3
- 76.92%
- Median
- 30.71%
- Q1
- 8.97%
- Min
- -14.85%
AZN’s Return on Equity of 19.18% is on par with the norm for the Drug Manufacturers - General industry, indicating its profitability relative to shareholder equity is typical for the sector.
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
AZN
10.93%
Drug Manufacturers - General Industry
- Max
- 25.72%
- Q3
- 17.89%
- Median
- 11.47%
- Q1
- 9.39%
- Min
- 2.87%
AZN’s Return on Invested Capital of 10.93% is in line with the norm for the Drug Manufacturers - General industry, reflecting a standard level of efficiency in generating profits from its capital base.
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
AZN
14.14%
Drug Manufacturers - General Industry
- Max
- 34.51%
- Q3
- 23.04%
- Median
- 14.73%
- Q1
- 11.78%
- Min
- 2.18%
AZN’s Net Profit Margin of 14.14% is aligned with the median group of its peers in the Drug Manufacturers - General industry. This indicates its ability to convert revenue into profit is typical for the sector.
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
AZN
19.21%
Drug Manufacturers - General Industry
- Max
- 40.70%
- Q3
- 28.90%
- Median
- 23.41%
- Q1
- 19.05%
- Min
- 16.13%
AZN’s Operating Profit Margin of 19.21% is around the midpoint for the Drug Manufacturers - General industry, indicating that its efficiency in managing core business operations is typical for the sector.
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 | AZN | COST |
|---|---|---|
| Return on Equity (TTM) | 19.18% | 31.13% |
| Return on Assets (TTM) | 7.31% | 10.39% |
| Return on Invested Capital (TTM) | 10.93% | 20.02% |
| Net Profit Margin (TTM) | 14.14% | 2.92% |
| Operating Profit Margin (TTM) | 19.21% | 3.75% |
| Gross Profit Margin (TTM) | 81.41% | 13.38% |
Financial Strength
Current Ratio
AZN
0.90
Drug Manufacturers - General Industry
- Max
- 1.67
- Q3
- 1.37
- Median
- 1.26
- Q1
- 0.87
- Min
- 0.39
AZN’s Current Ratio of 0.90 aligns with the median group of the Drug Manufacturers - General 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
AZN
0.77
Drug Manufacturers - General Industry
- Max
- 2.95
- Q3
- 2.44
- Median
- 0.86
- Q1
- 0.68
- Min
- 0.09
AZN’s Debt-to-Equity Ratio of 0.77 is typical for the Drug Manufacturers - General industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
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
AZN
7.95
Drug Manufacturers - General Industry
- Max
- 27.46
- Q3
- 14.40
- Median
- 7.80
- Q1
- 4.07
- Min
- 1.67
AZN’s Interest Coverage Ratio of 7.95 is positioned comfortably within the norm for the Drug Manufacturers - General 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 | AZN | COST |
|---|---|---|
| Current Ratio (TTM) | 0.90 | 1.02 |
| Quick Ratio (TTM) | 0.70 | 0.52 |
| Debt-to-Equity Ratio (TTM) | 0.77 | 0.30 |
| Debt-to-Asset Ratio (TTM) | 0.30 | 0.11 |
| Net Debt-to-EBITDA Ratio (TTM) | 1.49 | -0.49 |
| Interest Coverage Ratio (TTM) | 7.95 | 916.73 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AZN 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
AZN
1.87%
Drug Manufacturers - General Industry
- Max
- 8.72%
- Q3
- 4.10%
- Median
- 3.34%
- Q1
- 1.89%
- Min
- 0.00%
AZN’s Dividend Yield of 1.87% is in the lower quartile for the Drug Manufacturers - General industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.
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
AZN
63.60%
Drug Manufacturers - General Industry
- Max
- 266.46%
- Q3
- 78.91%
- Median
- 60.27%
- Q1
- 43.74%
- Min
- 0.00%
AZN’s Dividend Payout Ratio of 63.60% is within the typical range for the Drug Manufacturers - General industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
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 | AZN | COST |
|---|---|---|
| Dividend Yield (TTM) | 1.87% | 0.48% |
| Dividend Payout Ratio (TTM) | 63.60% | 19.69% |
Valuation
Price-to-Earnings Ratio
AZN
28.12
Drug Manufacturers - General Industry
- Max
- 27.96
- Q3
- 25.84
- Median
- 18.32
- Q1
- 16.65
- Min
- 3.39
At 28.12, AZN’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Drug Manufacturers - General industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.
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
AZN
2.56
Drug Manufacturers - General Industry
- Max
- 3.10
- Q3
- 3.09
- Median
- 2.72
- Q1
- 2.18
- Min
- 1.02
AZN’s Forward PEG Ratio of 2.56 is within the middle range of its peers in the Drug Manufacturers - General 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
AZN
3.98
Drug Manufacturers - General Industry
- Max
- 6.47
- Q3
- 4.47
- Median
- 3.53
- Q1
- 1.96
- Min
- 0.41
AZN’s P/S Ratio of 3.98 aligns with the market consensus for the Drug Manufacturers - General industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
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
AZN
5.33
Drug Manufacturers - General Industry
- Max
- 7.80
- Q3
- 7.80
- Median
- 5.30
- Q1
- 4.06
- Min
- 1.08
The P/B Ratio is often not a primary valuation metric for the Drug Manufacturers - General 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 | AZN | COST |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 28.12 | 55.87 |
| Forward PEG Ratio (TTM) | 2.56 | 5.06 |
| Price-to-Sales Ratio (P/S, TTM) | 3.98 | 1.63 |
| Price-to-Book Ratio (P/B, TTM) | 5.33 | 16.15 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 22.59 | 59.82 |
| EV-to-EBITDA (TTM) | 13.82 | 37.31 |
| EV-to-Sales (TTM) | 4.46 | 1.61 |