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.
| Profile Item | COST | CSCO |
|---|---|---|
| Name | Costco Wholesale Corp | Cisco Systems, Inc. |
| Country/Region | United States | United States |
| GICS Sector | Consumer Staples | Information Technology |
| GICS Industry Group | Consumer Staples Distribution & Retail | Technology Hardware & Equipment |
| GICS Industry | Consumer Staples Distribution & Retail | Communications Equipment |
| GICS Sub-Industry | Consumer Staples Merchandise Retail | Communications Equipment |
| Market Capitalization | 466.86 billion USD | 370.01 billion USD |
| Currency | USD | USD |
| Exchange | Nasdaq | Nasdaq |
| Listing Date | July 9, 1986 | February 16, 1990 |
| Security Type | Common Stock | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | COST | CSCO |
|---|---|---|
| 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
Return Distribution
Risk Metrics
| Metric | COST | CSCO |
|---|---|---|
| Volatility (1Y, Annualized) | 20.30% | 36.83% |
| Beta (5Y) | 0.84 | 1.02 |
| Max Drawdown (5Y) | -31.40% | -36.68% |
| Avg. Volume (3M) | 2.15M | 18.52M |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | COST | CSCO |
|---|---|---|
| Sharpe Ratio (1Y) | 0.52 | 0.99 |
| Sortino Ratio (1Y) | 0.77 | 1.44 |
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%
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%
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%
Profitability Metrics
| Metric | COST | CSCO |
|---|---|---|
| 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.
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
| Metric | COST | CSCO |
|---|---|---|
| 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
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
Financial Strength Metrics
| Metric | COST | CSCO |
|---|---|---|
| Current Ratio (MRQ) | 1.06 | 0.93 |
| Debt / Equity (MRQ) | 0.28 | 0.62 |
| Net Debt / EBITDA | -0.78 | 0.82 |
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%
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%
Dividend Metrics
| Metric | COST | CSCO |
|---|---|---|
| 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
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
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
Valuation Metrics
| Metric | COST | CSCO |
|---|---|---|
| P/E Ratio (TTM) | 50.75 | 28.18 |
| P/S Ratio (TTM) | 1.54 | 5.84 |
| P/B Ratio (MRQ) | 13.04 | 7.36 |
| Free Cash Flow Yield (TTM) | 1.45% | 3.02% |