WallStSmart

Acme United Corporation (ACU)vsCostco Wholesale Corp (COST)

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Smart Verdict

WallStSmart Research — data-driven comparison

Costco Wholesale Corp generates 137351% more annual revenue ($303.15B vs $220.55M). ACU leads profitability with a 5.1% profit margin vs 3.0%. ACU appears more attractively valued with a PEG of 1.54. ACU earns a higher WallStSmart Score of 57/100 (C).

ACU

Buy

57

out of 100

Grade: C

Growth: 7.3Profit: 5.0Value: 4.0Quality: 8.5
Piotroski: 5/9Altman Z: 3.97

COST

Buy

55

out of 100

Grade: C-

Growth: 6.7Profit: 6.5Value: 3.7Quality: 7.5
Piotroski: 4/9Altman Z: 4.73
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ACUSignificantly Overvalued (-23.4%)

Margin of Safety

-23.4%

Fair Value

$35.49

Current Price

$69.50

$34.01 premium

UndervaluedFair: $35.49Overvalued

Intrinsic value data unavailable for COST.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACU4 strengths · Avg: 9.0/10
EPS GrowthGrowth
73.9%10/10

Earnings expanding 73.9% YoY

Altman Z-ScoreHealth
3.9710/10

Safe zone — low bankruptcy risk

Price/BookValuation
2.2x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
18.2%8/10

18.2% revenue growth

COST5 strengths · Avg: 9.2/10
Market CapQuality
$448.57B10/10

Mega-cap, among the largest globally

Altman Z-ScoreHealth
4.7310/10

Safe zone — low bankruptcy risk

Return on EquityProfitability
25.8%9/10

Every $100 of equity generates 26 in profit

Debt/EquityHealth
0.249/10

Conservative balance sheet, low leverage

Free Cash FlowQuality
$2.48B8/10

Generating 2.5B in free cash flow

Areas to Watch

ACU4 concerns · Avg: 3.3/10
PEG RatioValuation
1.544/10

Expensive relative to growth rate

Market CapQuality
$257.86M3/10

Smaller company, higher risk/reward

Profit MarginProfitability
5.1%3/10

5.1% margin — thin

Operating MarginProfitability
3.9%3/10

Operating margin of 3.9%

COST4 concerns · Avg: 3.0/10
Price/BookValuation
12.6x4/10

Trading at 12.6x book value

Profit MarginProfitability
3.0%3/10

3.0% margin — thin

Operating MarginProfitability
3.8%3/10

Operating margin of 3.8%

PEG RatioValuation
5.072/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : ACU

The strongest argument for ACU centers on EPS Growth, Altman Z-Score, Price/Book. Revenue growth of 18.2% demonstrates continued momentum.

Bull Case : COST

The strongest argument for COST centers on Market Cap, Altman Z-Score, Return on Equity. Revenue growth of 11.1% demonstrates continued momentum.

Bear Case : ACU

The primary concerns for ACU are PEG Ratio, Market Cap, Profit Margin.

Bear Case : COST

The primary concerns for COST are Price/Book, Profit Margin, Operating Margin. A P/E of 48.8x leaves little room for execution misses. Thin 3.0% margins leave little buffer for downturns.

Key Dynamics to Monitor

ACU profiles as a growth stock while COST is a value play — different risk/reward profiles.

COST carries more volatility with a beta of 0.87 — expect wider price swings.

ACU is growing revenue faster at 18.2% — sustainability is the question.

COST generates stronger free cash flow (2.5B), providing more financial flexibility.

Bottom Line

ACU scores higher overall (57/100 vs 55/100) and 18.2% revenue growth. 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.

Acme United Corporation

CONSUMER DEFENSIVE · HOUSEHOLD & PERSONAL PRODUCTS · USA

Acme United Corporation supplies cutting, measuring, first aid, sharpening and safety products for the school, home, office, hardware, sporting goods and industrial markets in the United States, Canada, Europe and Asia. The company is headquartered in Shelton, Connecticut.

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.

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