Brown-Forman Corporation (BF-A)vsCostco Wholesale Corp (COST)
BF-A
Brown-Forman Corporation
$25.54
-0.97%
CONSUMER DEFENSIVE · Cap: $11.72B
COST
Costco Wholesale Corp
$971.87
+0.68%
CONSUMER DEFENSIVE · Cap: $423.23B
Smart Verdict
WallStSmart Research — data-driven comparison
Costco Wholesale Corp generates 7409% more annual revenue ($293.59B vs $3.91B). BF-A leads profitability with a 20.6% profit margin vs 3.0%. BF-A appears more attractively valued with a PEG of 4.19. COST earns a higher WallStSmart Score of 61/100 (C+).
BF-A
Buy58
out of 100
Grade: C
COST
Buy61
out of 100
Grade: C+
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 31.9%
Keeps 21 of every $100 in revenue as profit
Attractively priced relative to earnings
Reasonable price relative to book value
Mega-cap, among the largest globally
Safe zone — low bankruptcy risk
Every $100 of equity generates 27 in profit
Revenue surging 21.5% year-over-year
Earnings expanding 45.5% YoY
Generating 2.0B in free cash flow
Areas to Watch
2.0% revenue growth
1.3% earnings growth
Expensive relative to growth rate
3.0% margin — thin
Operating margin of 3.7%
Expensive relative to growth rate
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : BF-A
The strongest argument for BF-A centers on Operating Margin, Profit Margin, P/E Ratio. Profitability is solid with margins at 20.6% and operating margin at 31.9%.
Bull Case : COST
The strongest argument for COST centers on Market Cap, Altman Z-Score, Return on Equity. Revenue growth of 21.5% demonstrates continued momentum.
Bear Case : BF-A
The primary concerns for BF-A are Revenue Growth, EPS Growth, PEG Ratio.
Bear Case : COST
The primary concerns for COST are Profit Margin, Operating Margin, PEG Ratio. A P/E of 48.1x leaves little room for execution misses. Thin 3.0% margins leave little buffer for downturns.
Key Dynamics to Monitor
BF-A profiles as a value stock while COST is a growth play — different risk/reward profiles.
COST carries more volatility with a beta of 0.91 — expect wider price swings.
COST is growing revenue faster at 21.5% — sustainability is the question.
COST generates stronger free cash flow (2.0B), providing more financial flexibility.
Bottom Line
COST scores higher overall (61/100 vs 58/100) and 21.5% 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.
Brown-Forman Corporation
CONSUMER DEFENSIVE · BEVERAGES - WINERIES & DISTILLERIES · USA
The Brown Forman Corporation is one of the largest American-owned companies in the spirits and wine business. Based in Louisville, Kentucky, it manufactures several well known brands throughout the world, including Jack Daniel's, Early Times, Old Forester, Woodford Reserve, GlenDronach, BenRiach, Glenglassaugh, Finlandia, Herradura, Korbel, and Chambord.
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 BEVERAGES - WINERIES & DISTILLERIES Stocks
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