COST vs. WFC: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at COST and WFC, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
Symbol | COST | WFC |
---|---|---|
Company Name | Costco Wholesale Corporation | Wells Fargo & Company |
Country | United States | United States |
GICS Sector | Consumer Staples | Financials |
GICS Industry | Consumer Staples Distribution & Retail | Banks |
Market Capitalization | 405.73 billion USD | 258.42 billion USD |
Exchange | NasdaqGS | NYSE |
Listing Date | July 9, 1986 | June 1, 1972 |
Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of COST and WFC 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 | WFC |
---|---|---|
5-Day Price Return | -0.16% | -4.70% |
13-Week Price Return | -7.26% | -3.50% |
26-Week Price Return | -3.21% | 12.37% |
52-Week Price Return | 4.19% | 45.88% |
Month-to-Date Return | -1.11% | -3.76% |
Year-to-Date Return | -0.10% | 14.85% |
10-Day Avg. Volume | 3.02M | 11.56M |
3-Month Avg. Volume | 2.24M | 15.92M |
3-Month Volatility | 15.96% | 24.11% |
Beta | 1.00 | 1.14 |
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.
WFC
11.36%
Banks Industry
- Max
- 25.40%
- Q3
- 15.55%
- Median
- 12.00%
- Q1
- 8.98%
- Min
- -0.10%
WFC’s Return on Equity of 11.36% is on par with the norm for the Banks industry, indicating its profitability relative to shareholder equity is typical for the sector.
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.
WFC
22.19%
Banks Industry
- Max
- 54.20%
- Q3
- 35.73%
- Median
- 28.97%
- Q1
- 22.56%
- Min
- 6.98%
Falling into the lower quartile for the Banks industry, WFC’s Net Profit Margin of 22.19% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.
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.
WFC
25.35%
Banks Industry
- Max
- 63.35%
- Q3
- 44.73%
- Median
- 37.24%
- Q1
- 28.25%
- Min
- 12.28%
WFC’s Operating Profit Margin of 25.35% is in the lower quartile for the Banks industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.
Profitability at a Glance
Symbol | COST | WFC |
---|---|---|
Return on Equity (TTM) | 30.47% | 11.36% |
Return on Assets (TTM) | 10.83% | 1.06% |
Net Profit Margin (TTM) | 2.94% | 22.19% |
Operating Profit Margin (TTM) | 3.77% | 25.35% |
Gross Profit Margin (TTM) | 12.84% | -- |
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.
WFC
--
Banks Industry
- Max
- --
- Q3
- --
- Median
- --
- Q1
- --
- Min
- --
For the Banks industry, the Current Ratio is often not the most suitable measure of short-term liquidity.
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.
WFC
2.01
Banks Industry
- Max
- 5.78
- Q3
- 2.66
- Median
- 1.05
- Q1
- 0.40
- Min
- 0.00
The Debt-to-Equity Ratio is often not the primary focus for assessing leverage in the Banks industry.
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.
WFC
--
Banks Industry
- Max
- --
- Q3
- --
- Median
- --
- Q1
- --
- Min
- --
The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Banks industry.
Financial Strength at a Glance
Symbol | COST | WFC |
---|---|---|
Current Ratio (MRQ) | 1.03 | -- |
Quick Ratio (MRQ) | 0.55 | -- |
Debt-to-Equity Ratio (MRQ) | 0.20 | 2.01 |
Interest Coverage Ratio (TTM) | 91.27 | -- |
Growth
Revenue Growth
EPS Growth
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.
WFC
2.47%
Banks Industry
- Max
- 11.03%
- Q3
- 6.00%
- Median
- 3.87%
- Q1
- 2.41%
- Min
- 0.00%
WFC’s Dividend Yield of 2.47% is consistent with its peers in the Banks industry, providing a dividend return that is standard for its sector.
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.
WFC
31.00%
Banks Industry
- Max
- 134.24%
- Q3
- 79.39%
- Median
- 55.09%
- Q1
- 36.09%
- Min
- 0.00%
WFC’s Dividend Payout Ratio of 31.00% is in the lower quartile for the Banks industry. This suggests a conservative dividend policy, with a strategic focus on reinvesting profits for future growth.
Dividend at a Glance
Symbol | COST | WFC |
---|---|---|
Dividend Yield (TTM) | 0.54% | 2.47% |
Dividend Payout Ratio (TTM) | 34.59% | 31.00% |
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.
WFC
12.54
Banks Industry
- Max
- 22.69
- Q3
- 13.75
- Median
- 10.32
- Q1
- 7.73
- Min
- 2.59
WFC’s P/E Ratio of 12.54 is within the middle range for the Banks 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
1.48
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.
WFC
1.91
Banks Industry
- Max
- 4.90
- Q3
- 2.98
- Median
- 2.24
- Q1
- 1.59
- Min
- 0.45
The P/S Ratio is often not a primary valuation tool in the Banks industry.
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.
WFC
1.42
Banks Industry
- Max
- 2.09
- Q3
- 1.40
- Median
- 1.11
- Q1
- 0.86
- Min
- 0.29
WFC’s P/B Ratio of 1.42 is in the upper tier for the Banks 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 | WFC |
---|---|---|
Price-to-Earnings Ratio (TTM) | 50.20 | 12.54 |
Price-to-Sales Ratio (TTM) | 1.48 | 1.91 |
Price-to-Book Ratio (MRQ) | 14.34 | 1.42 |
Price-to-Free Cash Flow Ratio (TTM) | 51.88 | 17.02 |