COST vs. NOW: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at COST and NOW, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | COST | NOW |
|---|---|---|
| Company Name | Costco Wholesale Corporation | ServiceNow, Inc. |
| Country | United States | United States |
| GICS Sector | Consumer Staples | Information Technology |
| GICS Industry | Consumer Staples Distribution & Retail | Software |
| Market Capitalization | 421.09 billion USD | 184.27 billion USD |
| Exchange | NasdaqGS | NYSE |
| Listing Date | July 9, 1986 | June 29, 2012 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of COST and NOW 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 | NOW |
|---|---|---|
| 5-Day Price Return | -2.08% | 1.26% |
| 13-Week Price Return | -6.71% | -13.57% |
| 26-Week Price Return | -8.26% | -5.37% |
| 52-Week Price Return | 6.39% | 7.26% |
| Month-to-Date Return | 1.05% | -5.85% |
| Year-to-Date Return | 3.63% | -16.24% |
| 10-Day Avg. Volume | 2.32M | 1.72M |
| 3-Month Avg. Volume | 2.12M | 1.57M |
| 3-Month Volatility | 18.04% | 27.55% |
| Beta | 0.99 | 0.93 |
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.
NOW
16.62%
Software Industry
- Max
- 59.01%
- Q3
- 21.98%
- Median
- 7.15%
- Q1
- -11.12%
- Min
- -51.24%
NOW’s Return on Equity of 16.62% is on par with the norm for the Software industry, indicating its profitability relative to shareholder equity is typical for the sector.
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.
NOW
13.78%
Software Industry
- Max
- 48.14%
- Q3
- 18.23%
- Median
- 5.60%
- Q1
- -9.22%
- Min
- -49.36%
NOW’s Net Profit Margin of 13.78% is aligned with the median group of its peers in the Software industry. This indicates its ability to convert revenue into profit is typical for the sector.
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.
NOW
13.28%
Software Industry
- Max
- 57.34%
- Q3
- 20.60%
- Median
- 7.84%
- Q1
- -8.72%
- Min
- -51.37%
NOW’s Operating Profit Margin of 13.28% is around the midpoint for the Software industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | COST | NOW |
|---|---|---|
| Return on Equity (TTM) | 31.13% | 16.62% |
| Return on Assets (TTM) | 10.75% | 8.12% |
| Net Profit Margin (TTM) | 2.92% | 13.78% |
| Operating Profit Margin (TTM) | 3.75% | 13.28% |
| Gross Profit Margin (TTM) | 12.78% | 78.52% |
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.
NOW
1.09
Software Industry
- Max
- 3.83
- Q3
- 2.31
- Median
- 1.45
- Q1
- 1.03
- Min
- 0.24
NOW’s Current Ratio of 1.09 aligns with the median group of the Software industry, indicating that its short-term liquidity is in line with its sector peers.
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.
NOW
0.14
Software Industry
- Max
- 2.14
- Q3
- 0.90
- Median
- 0.29
- Q1
- 0.00
- Min
- 0.00
NOW’s Debt-to-Equity Ratio of 0.14 is typical for the Software 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
- 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.
NOW
32.13
Software Industry
- Max
- 67.02
- Q3
- 19.86
- Median
- 0.70
- Q1
- -12.50
- Min
- -53.00
NOW’s Interest Coverage Ratio of 32.13 is in the upper quartile for the Software industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
Financial Strength at a Glance
| Symbol | COST | NOW |
|---|---|---|
| Current Ratio (MRQ) | 1.02 | 1.09 |
| Quick Ratio (MRQ) | 0.52 | 0.99 |
| Debt-to-Equity Ratio (MRQ) | 0.21 | 0.14 |
| Interest Coverage Ratio (TTM) | 91.27 | 32.13 |
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.
NOW
0.00%
Software Industry
- Max
- 0.08%
- Q3
- 0.03%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
NOW currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.
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.
NOW
0.00%
Software Industry
- Max
- 1.32%
- Q3
- 0.53%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
NOW has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.
Dividend at a Glance
| Symbol | COST | NOW |
|---|---|---|
| Dividend Yield (TTM) | 0.35% | 0.00% |
| Dividend Payout Ratio (TTM) | 25.50% | 0.00% |
Valuation
Price-to-Earnings Ratio (TTM)
COST
56.05
Consumer Staples Distribution & Retail Industry
- Max
- 49.92
- Q3
- 31.34
- Median
- 23.38
- Q1
- 17.55
- Min
- 6.19
At 56.05, 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.
NOW
111.05
Software Industry
- Max
- 149.35
- Q3
- 100.21
- Median
- 47.97
- Q1
- 26.77
- Min
- 11.68
A P/E Ratio of 111.05 places NOW in the upper quartile for the Software industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.
Price-to-Sales Ratio (TTM)
COST
1.64
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 1.64 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.
NOW
15.30
Software Industry
- Max
- 25.24
- Q3
- 13.52
- Median
- 8.15
- Q1
- 4.87
- Min
- 0.98
NOW’s P/S Ratio of 15.30 is in the upper echelon for the Software 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.
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.
NOW
19.48
Software Industry
- Max
- 30.95
- Q3
- 14.91
- Median
- 7.75
- Q1
- 3.60
- Min
- 0.38
NOW’s P/B Ratio of 19.48 is in the upper tier for the Software 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 | NOW |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 56.05 | 111.05 |
| Price-to-Sales Ratio (TTM) | 1.64 | 15.30 |
| Price-to-Book Ratio (MRQ) | 16.62 | 19.48 |
| Price-to-Free Cash Flow Ratio (TTM) | 60.08 | 48.48 |