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COST vs. CSCO: Costco Wholesale vs. Cisco Systems Stock Comparison

How do Costco Wholesale (COST) and Cisco Systems (CSCO) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.

Company Profile

Costco Wholesale (COST) is classified in the Consumer Staples sector (Consumer Staples Distribution & Retail), whereas Cisco Systems (CSCO) belongs to Information Technology (Technology Hardware & Equipment) — their GICS classifications point to very different parts of the market.

Company profile comparison for Costco Wholesale (COST) and Cisco Systems (CSCO)
Profile ItemCOSTCSCO
NameCostco Wholesale CorpCisco Systems, Inc.
Country/RegionUnited StatesUnited States
GICS SectorConsumer StaplesInformation Technology
GICS Industry GroupConsumer Staples Distribution & RetailTechnology Hardware & Equipment
GICS IndustryConsumer Staples Distribution & RetailCommunications Equipment
GICS Sub-IndustryConsumer Staples Merchandise RetailCommunications Equipment
Market Capitalization466.86 billion USD370.01 billion USD
CurrencyUSDUSD
ExchangeNasdaqNasdaq
Listing DateJuly 9, 1986February 16, 1990
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

COST
CSCO
GSPC
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Costco Wholesale (COST) vs. Cisco Systems (CSCO), with S&P 500 (GSPC) for reference: Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Costco Wholesale (COST) and Cisco Systems (CSCO). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Costco Wholesale (COST) and Cisco Systems (CSCO). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for Costco Wholesale (COST) and Cisco Systems (CSCO)
MetricCOSTCSCO
Total Return (1Y)14.87%40.88%
Total Return (3Y, Annualized)24.84%26.81%
Total Return (5Y, Annualized)16.92%14.44%

Risk Profile

Drawdown History

COST
CSCO
GSPC
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Costco Wholesale (COST) vs. Cisco Systems (CSCO), with S&P 500 (GSPC) for reference: Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Costco Wholesale (COST) and Cisco Systems (CSCO). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Costco Wholesale (COST) and Cisco Systems (CSCO)
MetricCOSTCSCO
Volatility (1Y, Annualized)20.30%36.83%
Beta (5Y)0.841.02
Max Drawdown (5Y)-31.40%-36.68%
Avg. Volume (3M)2.15M18.52M

Risk-Adjusted Performance

Risk-Return Positioning

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COST and CSCO are plotted by 1-year volatility (risk) and 1-year return. Each dashed Capital Allocation Line uses that stock's own industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for Costco Wholesale (COST) and Cisco Systems (CSCO)
MetricCOSTCSCO
Sharpe Ratio (1Y)0.520.99
Sortino Ratio (1Y)0.771.44

Profitability

ROE (TTM)

Both Costco Wholesale (COST) at 28.40% and Cisco Systems (CSCO) at 27.32% sit in the top peer quartile for ROE, suggesting each generates more profit from shareholders’ equity than typical industry peers.

COST

Consumer Staples Distribution & Retail industry group

28.40%

Max
33.48%
COST
28.40%
Q3
22.31%
Median
15.57%
Q1
7.66%
Min
-2.27%

CSCO

Technology Hardware & Equipment industry group

27.32%

Max
42.47%
CSCO
27.32%
Q3
19.13%
Median
11.00%
Q1
1.63%
Min
-20.62%
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Costco Wholesale (COST) vs. Cisco Systems (CSCO): A comparison of their ROE against their respective Consumer Staples Distribution & Retail and Technology Hardware & Equipment industry group benchmarks.

Net Margin (TTM)

Cisco Systems (CSCO) at 20.95% retains a top-quartile share of revenue as profit, ahead of Costco Wholesale (COST) at 3.04%, which keeps about the industry-typical share.

COST

Consumer Staples Distribution & Retail industry group

3.04%

Max
5.45%
Q3
3.42%
COST
3.04%
Median
2.44%
Q1
1.86%
Min
-0.06%

CSCO

Technology Hardware & Equipment industry group

20.95%

Max
27.60%
CSCO
20.95%
Q3
11.66%
Median
4.08%
Q1
0.00%
Min
-11.02%
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Costco Wholesale (COST) vs. Cisco Systems (CSCO): A comparison of their net margin against their respective Consumer Staples Distribution & Retail and Technology Hardware & Equipment industry group benchmarks.

Operating Margin (TTM)

Cisco Systems (CSCO) at 27.72% operates in the top operating margin quartile, ahead of Costco Wholesale (COST) at 3.79%, which runs around its industry’s norm.

COST

Consumer Staples Distribution & Retail industry group

3.79%

Max
6.81%
Q3
5.49%
Median
3.84%
COST
3.79%
Q1
2.00%
Min
0.97%

CSCO

Technology Hardware & Equipment industry group

27.72%

Max
36.27%
CSCO
27.72%
Q3
18.36%
Median
8.84%
Q1
1.46%
Min
-21.39%
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Costco Wholesale (COST) vs. Cisco Systems (CSCO): A comparison of their operating margin against their respective Consumer Staples Distribution & Retail and Technology Hardware & Equipment industry group benchmarks.

Profitability Metrics

Profitability metrics for Costco Wholesale (COST) and Cisco Systems (CSCO)
MetricCOSTCSCO
ROE (TTM)28.40%27.32%
ROA (TTM)8.66%7.98%
Net Margin (TTM)3.04%20.95%
Operating Margin (TTM)3.79%27.72%
Gross Margin (TTM)12.77%64.52%

Growth

Revenue Growth

Both Costco Wholesale (COST) at 10.14% and Cisco Systems (CSCO) at 11.78% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.

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Costco Wholesale (COST) vs. Cisco Systems (CSCO): A comparison of their Revenue Growth across different time periods.

EPS Growth

Neither Costco Wholesale (COST) nor Cisco Systems (CSCO) reports a EPS growth value for this period, so a direct comparison isn't possible.

Growth Metrics

Growth metrics for Costco Wholesale (COST) and Cisco Systems (CSCO)
MetricCOSTCSCO
Revenue Growth (YoY)10.14%11.78%
Revenue Growth (3Y CAGR)7.76%3.57%
EPS Growth (YoY)----
EPS Growth (3Y CAGR)----

Financial Strength

Current Ratio (MRQ)

Costco Wholesale (COST) at 1.06 keeps current ratio within its industry’s typical mid-range, while Cisco Systems (CSCO) at 0.93 runs in the tighter-liquidity quartile — a thinner cushion against current liabilities for CSCO.

COST

Consumer Staples Distribution & Retail industry group

1.06

Max
2.04
Q3
1.45
Median
1.17
COST
1.06
Q1
1.00
Min
0.69

CSCO

Technology Hardware & Equipment industry group

0.93

Max
5.34
Q3
3.02
Median
1.95
Q1
1.32
CSCO
0.93
Min
0.17
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Costco Wholesale (COST) vs. Cisco Systems (CSCO): A comparison of their current ratio against their respective Consumer Staples Distribution & Retail and Technology Hardware & Equipment industry group benchmarks.

Debt / Equity (MRQ)

Costco Wholesale (COST) at 0.28 keeps leverage in the lower industry quartile, while Cisco Systems (CSCO) at 0.62 runs a more typical debt-to-equity mix.

COST

Consumer Staples Distribution & Retail industry group

0.28

Max
2.59
Q3
1.83
Median
1.24
Q1
0.63
COST
0.28
Min
0.01

CSCO

Technology Hardware & Equipment industry group

0.62

Max
1.76
Q3
0.78
CSCO
0.62
Median
0.24
Q1
0.04
Min
0.01
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Costco Wholesale (COST) vs. Cisco Systems (CSCO): A comparison of their debt-to-equity ratio against their respective Consumer Staples Distribution & Retail and Technology Hardware & Equipment industry group benchmarks.

Financial Strength Metrics

Financial strength metrics for Costco Wholesale (COST) and Cisco Systems (CSCO)
MetricCOSTCSCO
Current Ratio (MRQ)1.060.93
Debt / Equity (MRQ)0.280.62
Net Debt / EBITDA-0.780.82

Dividends

Dividend Yield (TTM)

Costco Wholesale (COST) at 0.52% pays an industry-typical yield; Cisco Systems (CSCO) at 1.73% is above its entire peer range — the higher number, but one that calls for a look at payout sustainability before treating it as an advantage.

COST

Consumer Staples Distribution & Retail industry group

0.52%

Max
2.90%
Q3
1.72%
COST
0.52%
Median
0.43%
Q1
0.00%
Min
0.00%

CSCO

Technology Hardware & Equipment industry group

1.73%

CSCO
1.73%
Max
0.73%
Q3
0.31%
Median
0.00%
Q1
0.00%
Min
0.00%
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Costco Wholesale (COST) vs. Cisco Systems (CSCO): A comparison of their dividend yield against their respective Consumer Staples Distribution & Retail and Technology Hardware & Equipment industry group benchmarks.

Dividend Payout Ratio (TTM)

Costco Wholesale (COST) at 26.69% keeps its payout in the industry’s typical band, while Cisco Systems (CSCO) at 49.85% pays out more than any of its peers — the most stretched cover in its group.

COST

Consumer Staples Distribution & Retail industry group

26.69%

Max
57.98%
Q3
30.05%
COST
26.69%
Median
11.72%
Q1
0.00%
Min
0.00%

CSCO

Technology Hardware & Equipment industry group

49.85%

CSCO
49.85%
Max
32.27%
Q3
14.48%
Median
0.00%
Q1
0.00%
Min
0.00%
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Costco Wholesale (COST) vs. Cisco Systems (CSCO): A comparison of their payout ratio against their respective Consumer Staples Distribution & Retail and Technology Hardware & Equipment industry group benchmarks.

Dividend Metrics

Dividend metrics for Costco Wholesale (COST) and Cisco Systems (CSCO)
MetricCOSTCSCO
Dividend Yield (TTM)0.52%1.73%
Dividend Payout Ratio (TTM)26.69%49.85%

Valuation

P/E Ratio (TTM)

Cisco Systems (CSCO) at 28.18 is near its industry’s usual P/E ratio, while Costco Wholesale (COST) at 50.75 sits in the richer quartile — COST needs stronger growth or earnings quality to justify the premium.

COST

Consumer Staples Distribution & Retail industry group

50.75

COST
50.75
Max
50.75
Q3
33.64
Median
22.19
Q1
16.09
Min
9.28

CSCO

Technology Hardware & Equipment industry group

28.18

Max
69.48
Q3
41.02
CSCO
28.18
Median
26.39
Q1
19.36
Min
6.07
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Costco Wholesale (COST) vs. Cisco Systems (CSCO): A comparison of their P/E ratio against their respective Consumer Staples Distribution & Retail and Technology Hardware & Equipment industry group benchmarks.

P/S Ratio (TTM)

Both Costco Wholesale (COST) at 1.54 and Cisco Systems (CSCO) at 5.84 command a richer price per dollar of sales than most peers, sitting in the upper P/S ratio quartile of their industries.

COST

Consumer Staples Distribution & Retail industry group

1.54

COST
1.54
Max
1.54
Q3
0.81
Median
0.47
Q1
0.26
Min
0.02

CSCO

Technology Hardware & Equipment industry group

5.84

Max
11.30
CSCO
5.84
Q3
5.82
Median
2.56
Q1
1.05
Min
0.00
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Costco Wholesale (COST) vs. Cisco Systems (CSCO): A comparison of their P/S ratio against their respective Consumer Staples Distribution & Retail and Technology Hardware & Equipment industry group benchmarks.

P/B Ratio (MRQ)

Both look rich against book: Cisco Systems (CSCO) at 7.36 sits in the upper P/B ratio quartile, and Costco Wholesale (COST) at 13.04 prices even higher, above its industry range.

COST

Consumer Staples Distribution & Retail industry group

13.04

COST
13.04
Max
10.15
Q3
6.27
Median
3.70
Q1
1.85
Min
0.93

CSCO

Technology Hardware & Equipment industry group

7.36

Max
10.75
CSCO
7.36
Q3
5.52
Median
3.17
Q1
1.79
Min
0.33
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Costco Wholesale (COST) vs. Cisco Systems (CSCO): A comparison of their P/B ratio against their respective Consumer Staples Distribution & Retail and Technology Hardware & Equipment industry group benchmarks.

Valuation Metrics

Valuation metrics for Costco Wholesale (COST) and Cisco Systems (CSCO)
MetricCOSTCSCO
P/E Ratio (TTM)50.7528.18
P/S Ratio (TTM)1.545.84
P/B Ratio (MRQ)13.047.36
Free Cash Flow Yield (TTM)1.45%3.02%