Albertsons Companies (ACI)vsCostco Wholesale Corp (COST)
ACI
Albertsons Companies
$17.07
-0.12%
CONSUMER DEFENSIVE · Cap: $9.38B
COST
Costco Wholesale Corp
$983.86
+1.29%
CONSUMER DEFENSIVE · Cap: $436.71B
Smart Verdict
WallStSmart Research — data-driven comparison
Costco Wholesale Corp generates 250% more annual revenue ($286.27B vs $81.72B). COST leads profitability with a 3.0% profit margin vs 1.1%. ACI appears more attractively valued with a PEG of 1.47. COST earns a higher WallStSmart Score of 53/100 (C-).
ACI
Buy53
out of 100
Grade: C-
COST
Buy53
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-69.3%
Fair Value
$10.47
Current Price
$17.07
$6.60 premium
Margin of Safety
-76.5%
Fair Value
$557.28
Current Price
$983.86
$426.58 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Safe zone — low bankruptcy risk
Every $100 of equity generates 30 in profit
Generating 1.2B in free cash flow
Mega-cap, among the largest globally
Safe zone — low bankruptcy risk
Every $100 of equity generates 30 in profit
Conservative balance sheet, low leverage
Generating 1.7B in free cash flow
Areas to Watch
1.9% revenue growth
1.1% margin — thin
Operating margin of 2.9%
Weak financial health signals
Trading at 13.6x book value
3.0% margin — thin
Operating margin of 3.7%
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : ACI
The strongest argument for ACI centers on P/E Ratio, Altman Z-Score, Return on Equity. PEG of 1.47 suggests the stock is reasonably priced for its growth.
Bull Case : COST
The strongest argument for COST centers on Market Cap, Altman Z-Score, Return on Equity.
Bear Case : ACI
The primary concerns for ACI are Revenue Growth, Profit Margin, Operating Margin. Debt-to-equity of 6.17 is elevated, increasing financial risk. Thin 1.1% margins leave little buffer for downturns.
Bear Case : COST
The primary concerns for COST are Price/Book, Profit Margin, Operating Margin. A P/E of 51.3x leaves little room for execution misses. Thin 3.0% margins leave little buffer for downturns.
Key Dynamics to Monitor
COST carries more volatility with a beta of 0.99 — expect wider price swings.
COST is growing revenue faster at 9.2% — sustainability is the question.
COST generates stronger free cash flow (1.7B), providing more financial flexibility.
Monitor GROCERY STORES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
ACI scores higher overall (53/100 vs 53/100). Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Albertsons Companies
CONSUMER DEFENSIVE · GROCERY STORES · USA
Albertsons Companies, Inc. participates in the pharmacy and food operation in the United States.
Visit Website →Costco Wholesale Corp
CONSUMER DEFENSIVE · DISCOUNT STORES · USA
Costco Wholesale Corporation (doing business as Costco Wholesale and also known simply as Costco) is an American multinational corporation which operates a chain of membership-only (needing a membership to shop there) big-box retail stores. As of 2020, Costco was the fifth largest retailer in the world, and the world's largest retailer of choice and prime beef, organic foods, rotisserie chicken, and wine as of 2016.
Visit Website →Compare with Other GROCERY STORES Stocks
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