COST vs. KHC: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at COST and KHC, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | COST | KHC |
|---|---|---|
| Company Name | Costco Wholesale Corporation | The Kraft Heinz Company |
| Country | United States | United States |
| GICS Sector | Consumer Staples | Consumer Staples |
| GICS Industry | Consumer Staples Distribution & Retail | Food Products |
| Market Capitalization | 405.76 billion USD | 28.86 billion USD |
| Exchange | NasdaqGS | NasdaqGS |
| Listing Date | July 9, 1986 | July 6, 2015 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of COST and KHC 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 | KHC |
|---|---|---|
| 5-Day Price Return | -2.68% | 0.87% |
| 13-Week Price Return | -7.40% | -11.12% |
| 26-Week Price Return | -9.09% | -13.64% |
| 52-Week Price Return | 0.18% | -25.72% |
| Month-to-Date Return | 0.45% | -1.42% |
| Year-to-Date Return | -0.08% | -20.61% |
| 10-Day Avg. Volume | 2.68M | 25.29M |
| 3-Month Avg. Volume | 2.33M | 16.11M |
| 3-Month Volatility | 17.69% | 25.86% |
| Beta | 1.01 | 0.07 |
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.
KHC
-9.62%
Food Products Industry
- Max
- 30.51%
- Q3
- 16.54%
- Median
- 10.46%
- Q1
- 6.76%
- Min
- -2.18%
KHC has a negative Return on Equity of -9.62%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.
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.
KHC
-17.35%
Food Products Industry
- Max
- 18.44%
- Q3
- 10.21%
- Median
- 6.29%
- Q1
- 3.53%
- Min
- -0.80%
KHC has a negative Net Profit Margin of -17.35%, indicating the company is operating at a net loss as its expenses exceeded its revenues.
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.
KHC
-23.21%
Food Products Industry
- Max
- 24.83%
- Q3
- 14.29%
- Median
- 9.64%
- Q1
- 6.11%
- Min
- 0.08%
KHC has a negative Operating Profit Margin of -23.21%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.
Profitability at a Glance
| Symbol | COST | KHC |
|---|---|---|
| Return on Equity (TTM) | 30.47% | -9.62% |
| Return on Assets (TTM) | 10.83% | -5.11% |
| Net Profit Margin (TTM) | 2.94% | -17.35% |
| Operating Profit Margin (TTM) | 3.77% | -23.21% |
| Gross Profit Margin (TTM) | 12.84% | 33.75% |
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.
KHC
1.13
Food Products Industry
- Max
- 3.99
- Q3
- 2.39
- Median
- 1.62
- Q1
- 1.23
- Min
- 0.57
KHC’s Current Ratio of 1.13 falls into the lower quartile for the Food Products 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.
KHC
0.51
Food Products Industry
- Max
- 1.92
- Q3
- 0.92
- Median
- 0.51
- Q1
- 0.25
- Min
- 0.00
KHC’s Debt-to-Equity Ratio of 0.51 is typical for the Food Products 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.
KHC
1.99
Food Products Industry
- Max
- 65.06
- Q3
- 29.45
- Median
- 9.43
- Q1
- 4.70
- Min
- -1.69
In the lower quartile for the Food Products industry, KHC’s Interest Coverage Ratio of 1.99 indicates a tighter cushion for servicing debt, suggesting less financial flexibility than many of its competitors.
Financial Strength at a Glance
| Symbol | COST | KHC |
|---|---|---|
| Current Ratio (MRQ) | 1.03 | 1.13 |
| Quick Ratio (MRQ) | 0.55 | 0.70 |
| Debt-to-Equity Ratio (MRQ) | 0.20 | 0.51 |
| Interest Coverage Ratio (TTM) | 91.27 | 1.99 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
COST
0.53%
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 0.53% is consistent with its peers in the Consumer Staples Distribution & Retail industry, providing a dividend return that is standard for its sector.
KHC
6.61%
Food Products Industry
- Max
- 8.09%
- Q3
- 4.48%
- Median
- 2.69%
- Q1
- 1.66%
- Min
- 0.00%
With a Dividend Yield of 6.61%, KHC offers a more attractive income stream than most of its peers in the Food Products industry, signaling a strong commitment to shareholder returns.
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.
KHC
41.32%
Food Products Industry
- Max
- 216.00%
- Q3
- 112.15%
- Median
- 72.83%
- Q1
- 41.56%
- Min
- 0.00%
KHC’s Dividend Payout Ratio of 41.32% is in the lower quartile for the Food Products industry. This suggests a conservative dividend policy, with a strategic focus on reinvesting profits for future growth.
Dividend at a Glance
| Symbol | COST | KHC |
|---|---|---|
| Dividend Yield (TTM) | 0.53% | 6.61% |
| Dividend Payout Ratio (TTM) | 34.59% | 41.32% |
Valuation
Price-to-Earnings Ratio (TTM)
COST
50.49
Consumer Staples Distribution & Retail Industry
- Max
- 47.99
- Q3
- 30.23
- Median
- 22.19
- Q1
- 16.85
- Min
- 4.52
At 50.49, 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.
KHC
--
Food Products Industry
- Max
- 41.70
- Q3
- 24.61
- Median
- 17.81
- Q1
- 12.59
- Min
- 3.07
P/E Ratio data for KHC is currently unavailable.
Price-to-Sales Ratio (TTM)
COST
1.49
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 1.49 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.
KHC
1.14
Food Products Industry
- Max
- 3.33
- Q3
- 1.74
- Median
- 1.10
- Q1
- 0.66
- Min
- 0.11
KHC’s P/S Ratio of 1.14 aligns with the market consensus for the Food Products 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.
KHC
0.73
Food Products Industry
- Max
- 5.01
- Q3
- 2.98
- Median
- 1.93
- Q1
- 1.28
- Min
- 0.47
KHC’s P/B Ratio of 0.73 is in the lower quartile for the Food Products industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.
Valuation at a Glance
| Symbol | COST | KHC |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 50.49 | -- |
| Price-to-Sales Ratio (TTM) | 1.49 | 1.14 |
| Price-to-Book Ratio (MRQ) | 14.34 | 0.73 |
| Price-to-Free Cash Flow Ratio (TTM) | 52.18 | 7.93 |