Archer-Daniels-Midland Company (ADM)vsCostco Wholesale Corp (COST)
ADM
Archer-Daniels-Midland Company
$77.23
-1.24%
CONSUMER DEFENSIVE · Cap: $39.81B
COST
Costco Wholesale Corp
$982.73
-0.95%
CONSUMER DEFENSIVE · Cap: $438.30B
Smart Verdict
WallStSmart Research — data-driven comparison
Costco Wholesale Corp generates 269% more annual revenue ($303.15B vs $82.10B). COST leads profitability with a 3.0% profit margin vs 2.2%. ADM appears more attractively valued with a PEG of 1.02. ADM earns a higher WallStSmart Score of 65/100 (C+).
ADM
Buy65
out of 100
Grade: C+
COST
Buy55
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-27.2%
Fair Value
$54.47
Current Price
$77.23
$22.76 premium
Intrinsic value data unavailable for COST.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 315.6% YoY
Reasonable price relative to book value
Mega-cap, among the largest globally
Safe zone — low bankruptcy risk
Every $100 of equity generates 26 in profit
Conservative balance sheet, low leverage
Generating 2.5B in free cash flow
Areas to Watch
ROE of 7.5% — below average capital efficiency
2.2% margin — thin
Operating margin of 4.0%
Weak financial health signals
Trading at 12.2x book value
3.0% margin — thin
Operating margin of 3.8%
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : ADM
The strongest argument for ADM centers on EPS Growth, Price/Book. PEG of 1.02 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. Revenue growth of 11.1% demonstrates continued momentum.
Bear Case : ADM
The primary concerns for ADM are Return on Equity, Profit Margin, Operating Margin. Thin 2.2% 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 47.6x 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 0.87 — expect wider price swings.
COST is growing revenue faster at 11.1% — sustainability is the question.
COST generates stronger free cash flow (2.5B), providing more financial flexibility.
Monitor FARM PRODUCTS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
ADM scores higher overall (65/100 vs 55/100). 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.
Archer-Daniels-Midland Company
CONSUMER DEFENSIVE · FARM PRODUCTS · USA
The Archer-Daniels-Midland Company, commonly known as ADM, is an American multinational food processing and commodities trading corporation founded in 1902 and headquartered in Chicago, Illinois. The company operates more than 270 plants and 420 crop procurement facilities worldwide, where cereal grains and oilseeds are processed into products used in food, beverage, nutraceutical, industrial, and animal feed markets worldwide.
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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