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COST vs. PM: A Head-to-Head Stock Comparison

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Here’s a clear look at COST and PM, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

SymbolCOSTPM
Company NameCostco Wholesale CorporationPhilip Morris International Inc.
CountryUnited StatesUnited States
GICS SectorConsumer StaplesConsumer Staples
GICS IndustryConsumer Staples Distribution & RetailTobacco
Market Capitalization405.73 billion USD238.58 billion USD
ExchangeNasdaqGSNYSE
Listing DateJuly 9, 1986March 17, 2008
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of COST and PM 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.

COST vs. PM: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolCOSTPM
5-Day Price Return-0.16%-5.96%
13-Week Price Return-7.26%-14.32%
26-Week Price Return-3.21%-3.44%
52-Week Price Return4.19%28.15%
Month-to-Date Return-1.11%-5.51%
Year-to-Date Return-0.10%27.35%
10-Day Avg. Volume3.02M6.48M
3-Month Avg. Volume2.24M5.74M
3-Month Volatility15.96%27.35%
Beta1.000.47

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.

PM

575.44%

Tobacco Industry

Max
49.48%
Q3
49.48%
Median
13.16%
Q1
5.02%
Min
4.04%

PM’s Return on Equity of 575.44% 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.

COST vs. PM: A comparison of their Return on Equity (TTM) against their respective Consumer Staples Distribution & Retail and Tobacco industry benchmarks.

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.

PM

21.08%

Tobacco Industry

Max
21.36%
Q3
16.88%
Median
10.39%
Q1
7.51%
Min
4.74%

A Net Profit Margin of 21.08% places PM in the upper quartile for the Tobacco industry, signifying strong profitability and more effective cost management than most of its peers.

COST vs. PM: A comparison of their Net Profit Margin (TTM) against their respective Consumer Staples Distribution & Retail and Tobacco industry benchmarks.

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.

PM

36.28%

Tobacco Industry

Max
18.53%
Q3
15.03%
Median
11.76%
Q1
11.00%
Min
6.94%

PM’s Operating Profit Margin of 36.28% 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.

COST vs. PM: A comparison of their Operating Profit Margin (TTM) against their respective Consumer Staples Distribution & Retail and Tobacco industry benchmarks.

Profitability at a Glance

SymbolCOSTPM
Return on Equity (TTM)30.47%575.44%
Return on Assets (TTM)10.83%12.56%
Net Profit Margin (TTM)2.94%21.08%
Operating Profit Margin (TTM)3.77%36.28%
Gross Profit Margin (TTM)12.84%66.46%

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.

PM

0.83

Tobacco Industry

Max
3.37
Q3
1.84
Median
1.26
Q1
0.79
Min
0.39

PM’s Current Ratio of 0.83 aligns with the median group of the Tobacco industry, indicating that its short-term liquidity is in line with its sector peers.

COST vs. PM: A comparison of their Current Ratio (MRQ) against their respective Consumer Staples Distribution & Retail and Tobacco industry benchmarks.

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.

PM

186.08

Tobacco Industry

Max
2.19
Q3
2.19
Median
0.58
Q1
0.07
Min
0.01

With a Debt-to-Equity Ratio of 186.08, PM 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.

COST vs. PM: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Consumer Staples Distribution & Retail and Tobacco industry benchmarks.

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.

PM

11.67

Tobacco Industry

Max
306.04
Q3
126.21
Median
9.35
Q1
6.32
Min
-11.45

PM’s Interest Coverage Ratio of 11.67 is positioned comfortably within the norm for the Tobacco industry, indicating a standard and healthy capacity to cover its interest payments.

COST vs. PM: A comparison of their Interest Coverage Ratio (TTM) against their respective Consumer Staples Distribution & Retail and Tobacco industry benchmarks.

Financial Strength at a Glance

SymbolCOSTPM
Current Ratio (MRQ)1.030.83
Quick Ratio (MRQ)0.550.83
Debt-to-Equity Ratio (MRQ)0.20186.08
Interest Coverage Ratio (TTM)91.2711.67

Growth

Revenue Growth

COST vs. PM: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

COST vs. PM: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

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.

PM

3.51%

Tobacco Industry

Max
6.77%
Q3
6.12%
Median
5.06%
Q1
3.83%
Min
0.57%

PM’s Dividend Yield of 3.51% is in the lower quartile for the Tobacco industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.

COST vs. PM: A comparison of their Dividend Yield (TTM) against their respective Consumer Staples Distribution & Retail and Tobacco industry benchmarks.

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.

PM

70.92%

Tobacco Industry

Max
78.29%
Q3
75.97%
Median
64.37%
Q1
50.14%
Min
49.96%

PM’s Dividend Payout Ratio of 70.92% is within the typical range for the Tobacco industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

COST vs. PM: A comparison of their Dividend Payout Ratio (TTM) against their respective Consumer Staples Distribution & Retail and Tobacco industry benchmarks.

Dividend at a Glance

SymbolCOSTPM
Dividend Yield (TTM)0.54%3.51%
Dividend Payout Ratio (TTM)34.59%70.92%

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.

PM

28.95

Tobacco Industry

Max
44.17
Q3
36.23
Median
27.79
Q1
11.97
Min
9.91

PM’s P/E Ratio of 28.95 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.

COST vs. PM: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Consumer Staples Distribution & Retail and Tobacco industry benchmarks.

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.

PM

6.10

Tobacco Industry

Max
7.60
Q3
5.15
Median
2.97
Q1
1.39
Min
0.80

PM’s P/S Ratio of 6.10 is in the upper echelon for the Tobacco 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.

COST vs. PM: A comparison of their Price-to-Sales Ratio (TTM) against their respective Consumer Staples Distribution & Retail and Tobacco industry benchmarks.

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.

PM

1,368.86

Tobacco Industry

Max
4.76
Q3
4.76
Median
3.34
Q1
1.97
Min
1.05

At 1,368.86, PM’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.

COST vs. PM: A comparison of their Price-to-Book Ratio (MRQ) against their respective Consumer Staples Distribution & Retail and Tobacco industry benchmarks.

Valuation at a Glance

SymbolCOSTPM
Price-to-Earnings Ratio (TTM)50.2028.95
Price-to-Sales Ratio (TTM)1.486.10
Price-to-Book Ratio (MRQ)14.341,368.86
Price-to-Free Cash Flow Ratio (TTM)51.8824.46