WallStSmart

Central Garden & Pet Company (CENT)vsCostco Wholesale Corp (COST)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Costco Wholesale Corp generates 9164% more annual revenue ($286.27B vs $3.09B). CENT leads profitability with a 5.0% profit margin vs 3.0%. CENT appears more attractively valued with a PEG of 2.01. COST earns a higher WallStSmart Score of 61/100 (C+).

CENT

Hold

49

out of 100

Grade: D+

Growth: 2.0Profit: 5.0Value: 7.3Quality: 5.0

COST

Buy

61

out of 100

Grade: C+

Growth: 8.0Profit: 6.5Value: 3.0Quality: 7.5
Piotroski: 4/9Altman Z: 4.84
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CENTUndervalued (+71.7%)

Margin of Safety

+71.7%

Fair Value

$131.93

Current Price

$37.47

$94.46 discount

UndervaluedFair: $131.93Overvalued

Intrinsic value data unavailable for COST.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CENT2 strengths · Avg: 9.0/10
Price/BookValuation
1.5x10/10

Reasonable price relative to book value

P/E RatioValuation
15.3x8/10

Attractively priced relative to earnings

COST6 strengths · Avg: 9.0/10
Market CapQuality
$450.10B10/10

Mega-cap, among the largest globally

Altman Z-ScoreHealth
4.8410/10

Safe zone — low bankruptcy risk

Return on EquityProfitability
29.6%9/10

Every $100 of equity generates 30 in profit

Debt/EquityHealth
0.279/10

Conservative balance sheet, low leverage

Revenue GrowthGrowth
21.5%8/10

Revenue surging 21.5% year-over-year

EPS GrowthGrowth
45.5%8/10

Earnings expanding 45.5% YoY

Areas to Watch

CENT4 concerns · Avg: 3.0/10
PEG RatioValuation
2.014/10

Expensive relative to growth rate

Profit MarginProfitability
5.0%3/10

5.0% margin — thin

Operating MarginProfitability
3.9%3/10

Operating margin of 3.9%

Revenue GrowthGrowth
-6.0%2/10

Revenue declined 6.0%

COST4 concerns · Avg: 2.5/10
Profit MarginProfitability
3.0%3/10

3.0% margin — thin

Operating MarginProfitability
3.7%3/10

Operating margin of 3.7%

PEG RatioValuation
5.532/10

Expensive relative to growth rate

P/E RatioValuation
52.6x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : CENT

The strongest argument for CENT centers on Price/Book, P/E Ratio.

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 : CENT

The primary concerns for CENT are PEG Ratio, Profit Margin, Operating Margin.

Bear Case : COST

The primary concerns for COST are Profit Margin, Operating Margin, PEG Ratio. A P/E of 52.6x leaves little room for execution misses. Thin 3.0% margins leave little buffer for downturns.

Key Dynamics to Monitor

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

COST carries more volatility with a beta of 0.98 — expect wider price swings.

COST is growing revenue faster at 21.5% — sustainability is the question.

COST generates stronger free cash flow (1.7B), providing more financial flexibility.

Bottom Line

COST scores higher overall (61/100 vs 49/100) and 21.5% revenue growth. CENT offers better value entry with a 71.7% margin of safety. 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.

Central Garden & Pet Company

CONSUMER DEFENSIVE · PACKAGED FOODS · USA

Central Garden & Pet Company produces and distributes various products for the lawn and garden, and pet supply markets in the United States. The company is headquartered in Walnut Creek, California.

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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