Conagra Brands, Inc. (CAG)vsCostco Wholesale Corp (COST)
CAG
Conagra Brands, Inc.
$14.09
+1.22%
CONSUMER DEFENSIVE · Cap: $6.91B
COST
Costco Wholesale Corp
$996.08
+1.36%
CONSUMER DEFENSIVE · Cap: $438.30B
Smart Verdict
WallStSmart Research — data-driven comparison
Costco Wholesale Corp generates 2596% more annual revenue ($303.15B vs $11.24B). COST leads profitability with a 3.0% profit margin vs -17.0%. COST appears more attractively valued with a PEG of 4.43. COST earns a higher WallStSmart Score of 55/100 (C-).
CAG
Hold45
out of 100
Grade: D+
COST
Buy55
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+7.1%
Fair Value
$21.54
Current Price
$14.09
$7.45 discount
Intrinsic value data unavailable for COST.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
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
Elevated debt levels
Weak financial health signals
Expensive relative to growth rate
ROE of -0.5% — below average capital efficiency
Trading at 12.3x book value
3.0% margin — thin
Operating margin of 3.8%
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : CAG
The strongest argument for CAG centers on Price/Book.
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 : CAG
The primary concerns for CAG are Debt/Equity, Piotroski F-Score, PEG Ratio.
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
CAG profiles as a turnaround stock while COST is a value play — different risk/reward profiles.
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 PACKAGED FOODS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
COST scores higher overall (55/100 vs 45/100) and 11.1% revenue growth. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Conagra Brands, Inc.
CONSUMER DEFENSIVE · PACKAGED FOODS · USA
Conagra Brands, Inc. (formerly ConAgra Foods) is an American consumer packaged goods holding company headquartered in Chicago, Illinois. Conagra makes and sells products under various brand names that are available in supermarkets, restaurants, and food service establishments.
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 PACKAGED FOODS Stocks
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