COST vs. MO: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at COST and MO, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | COST | MO |
|---|---|---|
| Company Name | Costco Wholesale Corporation | Altria Group, Inc. |
| Country | United States | United States |
| GICS Sector | Consumer Staples | Consumer Staples |
| GICS Industry | Consumer Staples Distribution & Retail | Tobacco |
| Market Capitalization | 434.10 billion USD | 110.03 billion USD |
| Exchange | NasdaqGS | NYSE |
| Listing Date | July 9, 1986 | January 2, 1962 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of COST and MO 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 | MO |
|---|---|---|
| 5-Day Price Return | 0.14% | 3.07% |
| 13-Week Price Return | -3.67% | 15.01% |
| 26-Week Price Return | -6.86% | 24.43% |
| 52-Week Price Return | 13.35% | 30.19% |
| Month-to-Date Return | 4.17% | 5.75% |
| Year-to-Date Return | 6.83% | 25.26% |
| 10-Day Avg. Volume | 2.34M | 7.66M |
| 3-Month Avg. Volume | 2.24M | 8.98M |
| 3-Month Volatility | 17.98% | 20.56% |
| Beta | 0.99 | 0.60 |
Profitability
Return on Equity (TTM)
COST
31.13%
Consumer Staples Distribution & Retail Industry
- Max
- 34.20%
- Q3
- 21.61%
- Median
- 13.70%
- Q1
- 5.18%
- Min
- -9.87%
In the upper quartile for the Consumer Staples Distribution & Retail 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.
MO
149.65%
Tobacco Industry
- Max
- 49.48%
- Q3
- 49.48%
- Median
- 7.92%
- Q1
- 5.28%
- Min
- 4.04%
MO’s Return on Equity of 149.65% is exceptionally high, placing it well beyond the typical range for the Tobacco industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.
Net Profit Margin (TTM)
COST
2.92%
Consumer Staples Distribution & Retail Industry
- Max
- 7.16%
- Q3
- 3.87%
- Median
- 2.44%
- Q1
- 1.65%
- Min
- -0.70%
COST’s Net Profit Margin of 2.92% 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.
MO
37.24%
Tobacco Industry
- Max
- 21.36%
- Q3
- 18.49%
- Median
- 11.05%
- Q1
- 6.80%
- Min
- 5.37%
MO’s Net Profit Margin of 37.24% is exceptionally high, placing it well beyond the typical range for the Tobacco industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.
Operating Profit Margin (TTM)
COST
3.75%
Consumer Staples Distribution & Retail Industry
- Max
- 9.42%
- Q3
- 5.29%
- Median
- 4.03%
- Q1
- 2.22%
- Min
- -1.85%
COST’s Operating Profit Margin of 3.75% 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.
MO
46.84%
Tobacco Industry
- Max
- 14.35%
- Q3
- 12.68%
- Median
- 11.00%
- Q1
- 10.58%
- Min
- 10.58%
MO’s Operating Profit Margin of 46.84% is exceptionally high, placing it well above the typical range for the Tobacco industry. This demonstrates outstanding efficiency in managing its core operations, which can be a result of strong pricing power or superior cost control.
Profitability at a Glance
| Symbol | COST | MO |
|---|---|---|
| Return on Equity (TTM) | 31.13% | 149.65% |
| Return on Assets (TTM) | 10.75% | 25.57% |
| Net Profit Margin (TTM) | 2.92% | 37.24% |
| Operating Profit Margin (TTM) | 3.75% | 46.84% |
| Gross Profit Margin (TTM) | 12.78% | 61.41% |
Financial Strength
Current Ratio (MRQ)
COST
1.02
Consumer Staples Distribution & Retail Industry
- Max
- 1.80
- Q3
- 1.25
- Median
- 0.97
- Q1
- 0.82
- Min
- 0.52
COST’s Current Ratio of 1.02 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.
MO
0.39
Tobacco Industry
- Max
- 3.20
- Q3
- 1.83
- Median
- 0.83
- Q1
- 0.72
- Min
- 0.57
MO’s Current Ratio of 0.39 is notably low, falling beneath the typical range for the Tobacco industry. This suggests a heightened liquidity risk and could indicate potential challenges in meeting its short-term obligations.
Debt-to-Equity Ratio (MRQ)
COST
0.21
Consumer Staples Distribution & Retail Industry
- Max
- 3.44
- Q3
- 1.56
- 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 0.21 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
MO
8.67
Tobacco Industry
- Max
- 2.19
- Q3
- 2.19
- Median
- 0.74
- Q1
- 0.26
- Min
- 0.01
With a Debt-to-Equity Ratio of 8.67, MO operates with exceptionally high leverage compared to the Tobacco industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.
Interest Coverage Ratio (TTM)
COST
91.27
Consumer Staples Distribution & Retail Industry
- Max
- 24.36
- Q3
- 14.71
- Median
- 6.25
- Q1
- 3.16
- Min
- -10.70
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.
MO
36.48
Tobacco Industry
- Max
- 36.48
- Q3
- 28.54
- Median
- 7.02
- Q1
- 6.32
- Min
- -11.45
MO’s Interest Coverage Ratio of 36.48 is in the upper quartile for the Tobacco industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
Financial Strength at a Glance
| Symbol | COST | MO |
|---|---|---|
| Current Ratio (MRQ) | 1.02 | 0.39 |
| Quick Ratio (MRQ) | 0.52 | 0.24 |
| Debt-to-Equity Ratio (MRQ) | 0.21 | 8.67 |
| Interest Coverage Ratio (TTM) | 91.27 | 36.48 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
COST
0.35%
Consumer Staples Distribution & Retail Industry
- Max
- 6.63%
- Q3
- 3.17%
- Median
- 1.35%
- Q1
- 0.00%
- Min
- 0.00%
COST’s Dividend Yield of 0.35% is consistent with its peers in the Consumer Staples Distribution & Retail industry, providing a dividend return that is standard for its sector.
MO
6.25%
Tobacco Industry
- Max
- 6.71%
- Q3
- 6.06%
- Median
- 5.48%
- Q1
- 3.91%
- Min
- 3.27%
With a Dividend Yield of 6.25%, MO offers a more attractive income stream than most of its peers in the Tobacco industry, signaling a strong commitment to shareholder returns.
Dividend Payout Ratio (TTM)
COST
25.50%
Consumer Staples Distribution & Retail Industry
- Max
- 163.46%
- Q3
- 90.34%
- Median
- 52.13%
- Q1
- 20.46%
- Min
- 0.00%
COST’s Dividend Payout Ratio of 25.50% is within the typical range for the Consumer Staples Distribution & Retail industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
MO
78.29%
Tobacco Industry
- Max
- 77.64%
- Q3
- 76.55%
- Median
- 50.14%
- Q1
- 47.08%
- Min
- 42.39%
At 78.29%, MO’s Dividend Payout Ratio is exceptionally high, exceeding the typical range for the Tobacco industry. While this provides a significant return to shareholders, it may limit funds for reinvestment and could be difficult to sustain.
Dividend at a Glance
| Symbol | COST | MO |
|---|---|---|
| Dividend Yield (TTM) | 0.35% | 6.25% |
| Dividend Payout Ratio (TTM) | 25.50% | 78.29% |
Valuation
Price-to-Earnings Ratio (TTM)
COST
55.52
Consumer Staples Distribution & Retail Industry
- Max
- 49.92
- Q3
- 31.34
- Median
- 23.38
- Q1
- 17.55
- Min
- 6.19
At 55.52, 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.
MO
12.52
Tobacco Industry
- Max
- 42.16
- Q3
- 36.45
- Median
- 20.93
- Q1
- 10.52
- Min
- 9.15
MO’s P/E Ratio of 12.52 is within the middle range for the Tobacco 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
1.62
Consumer Staples Distribution & Retail Industry
- Max
- 1.88
- Q3
- 1.00
- Median
- 0.55
- Q1
- 0.40
- Min
- 0.06
COST’s P/S Ratio of 1.62 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.
MO
4.66
Tobacco Industry
- Max
- 10.48
- Q3
- 5.39
- Median
- 3.32
- Q1
- 1.54
- Min
- 0.59
MO’s P/S Ratio of 4.66 aligns with the market consensus for the Tobacco 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
16.62
Consumer Staples Distribution & Retail Industry
- Max
- 9.74
- Q3
- 4.99
- Median
- 2.88
- Q1
- 1.77
- Min
- 0.46
At 16.62, 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.
MO
27.09
Tobacco Industry
- Max
- 4.76
- Q3
- 4.76
- Median
- 2.18
- Q1
- 1.70
- Min
- 1.06
At 27.09, MO’s P/B Ratio is at an extreme premium to the Tobacco 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 | COST | MO |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 55.52 | 12.52 |
| Price-to-Sales Ratio (TTM) | 1.62 | 4.66 |
| Price-to-Book Ratio (MRQ) | 16.62 | 27.09 |
| Price-to-Free Cash Flow Ratio (TTM) | 59.51 | 12.60 |