COST vs. CSCO: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at COST and CSCO, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | COST | CSCO |
|---|---|---|
| Company Name | Costco Wholesale Corporation | Cisco Systems, Inc. |
| Country | United States | United States |
| GICS Sector | Consumer Staples | Information Technology |
| GICS Industry | Consumer Staples Distribution & Retail | Communications Equipment |
| Market Capitalization | 406.60 billion USD | 271.78 billion USD |
| Exchange | NasdaqGS | NasdaqGS |
| Listing Date | July 9, 1986 | February 16, 1990 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of COST and CSCO 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.
Historical Performance at a Glance
| Symbol | COST | CSCO |
|---|---|---|
| 5-Day Price Return | -2.08% | 1.33% |
| 13-Week Price Return | -6.50% | -0.51% |
| 26-Week Price Return | -0.44% | 11.97% |
| 52-Week Price Return | 4.52% | 29.18% |
| Month-to-Date Return | -1.88% | 0.48% |
| Year-to-Date Return | 1.02% | 16.13% |
| 10-Day Avg. Volume | 3.12M | 21.60M |
| 3-Month Avg. Volume | 2.22M | 19.74M |
| 3-Month Volatility | 15.94% | 18.80% |
| Beta | 0.98 | 0.87 |
Profitability
Return on Equity (TTM)
COST
30.47%
Consumer Staples Distribution & Retail Industry
- Max
- 36.53%
- Q3
- 21.48%
- Median
- 13.14%
- Q1
- 8.11%
- Min
- -9.87%
In the upper quartile for the Consumer Staples Distribution & Retail industry, COST’s Return on Equity of 30.47% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
CSCO
22.18%
Communications Equipment Industry
- Max
- 32.30%
- Q3
- 20.90%
- Median
- 9.10%
- Q1
- 4.29%
- Min
- -13.50%
In the upper quartile for the Communications Equipment industry, CSCO’s Return on Equity of 22.18% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
Net Profit Margin (TTM)
COST
2.94%
Consumer Staples Distribution & Retail Industry
- Max
- 7.25%
- Q3
- 3.98%
- Median
- 2.77%
- Q1
- 1.73%
- Min
- -0.70%
COST’s Net Profit Margin of 2.94% is aligned with the median group of its peers in the Consumer Staples Distribution & Retail industry. This indicates its ability to convert revenue into profit is typical for the sector.
CSCO
17.97%
Communications Equipment Industry
- Max
- 23.65%
- Q3
- 12.56%
- Median
- 5.62%
- Q1
- 2.50%
- Min
- -3.09%
A Net Profit Margin of 17.97% places CSCO in the upper quartile for the Communications Equipment industry, signifying strong profitability and more effective cost management than most of its peers.
Operating Profit Margin (TTM)
COST
3.77%
Consumer Staples Distribution & Retail Industry
- Max
- 9.42%
- Q3
- 5.61%
- Median
- 4.18%
- Q1
- 2.72%
- Min
- 0.23%
COST’s Operating Profit Margin of 3.77% is around the midpoint for the Consumer Staples Distribution & Retail industry, indicating that its efficiency in managing core business operations is typical for the sector.
CSCO
20.76%
Communications Equipment Industry
- Max
- 25.23%
- Q3
- 13.72%
- Median
- 6.44%
- Q1
- 3.00%
- Min
- -10.95%
An Operating Profit Margin of 20.76% places CSCO in the upper quartile for the Communications Equipment industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
Profitability at a Glance
| Symbol | COST | CSCO |
|---|---|---|
| Return on Equity (TTM) | 30.47% | 22.18% |
| Return on Assets (TTM) | 10.83% | 8.37% |
| Net Profit Margin (TTM) | 2.94% | 17.97% |
| Operating Profit Margin (TTM) | 3.77% | 20.76% |
| Gross Profit Margin (TTM) | 12.84% | 64.94% |
Financial Strength
Current Ratio (MRQ)
COST
1.03
Consumer Staples Distribution & Retail Industry
- Max
- 1.76
- Q3
- 1.28
- Median
- 0.98
- Q1
- 0.82
- Min
- 0.49
COST’s Current Ratio of 1.03 aligns with the median group of the Consumer Staples Distribution & Retail industry, indicating that its short-term liquidity is in line with its sector peers.
CSCO
1.00
Communications Equipment Industry
- Max
- 3.33
- Q3
- 2.13
- Median
- 1.55
- Q1
- 1.15
- Min
- 0.91
CSCO’s Current Ratio of 1.00 falls into the lower quartile for the Communications Equipment industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
Debt-to-Equity Ratio (MRQ)
COST
0.20
Consumer Staples Distribution & Retail Industry
- Max
- 3.61
- Q3
- 1.64
- Median
- 1.00
- Q1
- 0.30
- Min
- 0.00
Falling into the lower quartile for the Consumer Staples Distribution & Retail industry, COST’s Debt-to-Equity Ratio of 0.20 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
CSCO
0.60
Communications Equipment Industry
- Max
- 1.44
- Q3
- 0.86
- Median
- 0.53
- Q1
- 0.22
- Min
- 0.00
CSCO’s Debt-to-Equity Ratio of 0.60 is typical for the Communications Equipment industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
Interest Coverage Ratio (TTM)
COST
91.27
Consumer Staples Distribution & Retail Industry
- Max
- 24.36
- Q3
- 13.75
- Median
- 5.79
- Q1
- 3.04
- Min
- -5.51
With an Interest Coverage Ratio of 91.27, COST demonstrates a superior capacity to service its debt, placing it well above the typical range for the Consumer Staples Distribution & Retail industry. This stems from either robust earnings or a conservative debt load.
CSCO
22.76
Communications Equipment Industry
- Max
- 55.49
- Q3
- 34.19
- Median
- 7.59
- Q1
- 3.73
- Min
- -9.94
CSCO’s Interest Coverage Ratio of 22.76 is positioned comfortably within the norm for the Communications Equipment industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | COST | CSCO |
|---|---|---|
| Current Ratio (MRQ) | 1.03 | 1.00 |
| Quick Ratio (MRQ) | 0.55 | 0.91 |
| Debt-to-Equity Ratio (MRQ) | 0.20 | 0.60 |
| Interest Coverage Ratio (TTM) | 91.27 | 22.76 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
COST
0.54%
Consumer Staples Distribution & Retail Industry
- Max
- 6.08%
- Q3
- 3.33%
- Median
- 1.77%
- Q1
- 0.00%
- Min
- 0.00%
COST’s Dividend Yield of 0.54% is consistent with its peers in the Consumer Staples Distribution & Retail industry, providing a dividend return that is standard for its sector.
CSCO
2.37%
Communications Equipment Industry
- Max
- 8.13%
- Q3
- 3.29%
- Median
- 0.94%
- Q1
- 0.00%
- Min
- 0.00%
CSCO’s Dividend Yield of 2.37% is consistent with its peers in the Communications Equipment industry, providing a dividend return that is standard for its sector.
Dividend Payout Ratio (TTM)
COST
34.59%
Consumer Staples Distribution & Retail Industry
- Max
- 172.48%
- Q3
- 103.93%
- Median
- 54.70%
- Q1
- 24.82%
- Min
- 0.00%
COST’s Dividend Payout Ratio of 34.59% is within the typical range for the Consumer Staples Distribution & Retail industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
CSCO
63.23%
Communications Equipment Industry
- Max
- 111.16%
- Q3
- 70.91%
- Median
- 30.78%
- Q1
- 0.00%
- Min
- 0.00%
CSCO’s Dividend Payout Ratio of 63.23% is within the typical range for the Communications Equipment industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | COST | CSCO |
|---|---|---|
| Dividend Yield (TTM) | 0.54% | 2.37% |
| Dividend Payout Ratio (TTM) | 34.59% | 63.23% |
Valuation
Price-to-Earnings Ratio (TTM)
COST
50.20
Consumer Staples Distribution & Retail Industry
- Max
- 47.99
- Q3
- 30.23
- Median
- 22.19
- Q1
- 16.85
- Min
- 4.52
At 50.20, COST’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Consumer Staples Distribution & Retail industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.
CSCO
26.70
Communications Equipment Industry
- Max
- 103.74
- Q3
- 61.65
- Median
- 26.20
- Q1
- 18.12
- Min
- 4.19
CSCO’s P/E Ratio of 26.70 is within the middle range for the Communications Equipment industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
Price-to-Sales Ratio (TTM)
COST
1.48
Consumer Staples Distribution & Retail Industry
- Max
- 1.79
- Q3
- 0.96
- Median
- 0.53
- Q1
- 0.37
- Min
- 0.06
COST’s P/S Ratio of 1.48 is in the upper echelon for the Consumer Staples Distribution & Retail 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.
CSCO
4.80
Communications Equipment Industry
- Max
- 6.86
- Q3
- 6.24
- Median
- 2.44
- Q1
- 1.02
- Min
- 0.48
CSCO’s P/S Ratio of 4.80 aligns with the market consensus for the Communications Equipment industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
Price-to-Book Ratio (MRQ)
COST
14.34
Consumer Staples Distribution & Retail Industry
- Max
- 8.68
- Q3
- 4.97
- Median
- 2.98
- Q1
- 1.86
- Min
- 0.46
At 14.34, COST’s P/B Ratio is at an extreme premium to the Consumer Staples Distribution & Retail 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.
CSCO
5.74
Communications Equipment Industry
- Max
- 6.28
- Q3
- 5.73
- Median
- 3.32
- Q1
- 2.02
- Min
- 0.42
CSCO’s P/B Ratio of 5.74 is in the upper tier for the Communications Equipment industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.
Valuation at a Glance
| Symbol | COST | CSCO |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 50.20 | 26.70 |
| Price-to-Sales Ratio (TTM) | 1.48 | 4.80 |
| Price-to-Book Ratio (MRQ) | 14.34 | 5.74 |
| Price-to-Free Cash Flow Ratio (TTM) | 51.88 | 20.45 |