Colgate-Palmolive Company (CL)vsCostco Wholesale Corp (COST)
CL
Colgate-Palmolive Company
$84.29
+1.71%
CONSUMER DEFENSIVE · Cap: $67.63B
COST
Costco Wholesale Corp
$983.86
+1.29%
CONSUMER DEFENSIVE · Cap: $436.71B
Smart Verdict
WallStSmart Research — data-driven comparison
Costco Wholesale Corp generates 1304% more annual revenue ($286.27B vs $20.38B). CL leads profitability with a 10.5% profit margin vs 3.0%. CL appears more attractively valued with a PEG of 3.26. CL earns a higher WallStSmart Score of 56/100 (C).
CL
Buy56
out of 100
Grade: C
COST
Buy53
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-274.5%
Fair Value
$22.51
Current Price
$84.29
$61.78 premium
Margin of Safety
-76.5%
Fair Value
$557.28
Current Price
$983.86
$426.58 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 50 in profit
Large-cap with strong market position
Strong operational efficiency at 20.4%
Generating 1.3B in free cash flow
Mega-cap, among the largest globally
Safe zone — low bankruptcy risk
Every $100 of equity generates 30 in profit
Conservative balance sheet, low leverage
Generating 1.7B in free cash flow
Areas to Watch
Premium valuation, high expectations priced in
1.1% earnings growth
Weak financial health signals
Expensive relative to growth rate
Trading at 13.6x book value
3.0% margin — thin
Operating margin of 3.7%
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : CL
The strongest argument for CL centers on Return on Equity, Market Cap, Operating Margin.
Bull Case : COST
The strongest argument for COST centers on Market Cap, Altman Z-Score, Return on Equity.
Bear Case : CL
The primary concerns for CL are P/E Ratio, EPS Growth, Piotroski F-Score. Debt-to-equity of 147.93 is elevated, increasing financial risk.
Bear Case : COST
The primary concerns for COST are Price/Book, Profit Margin, Operating Margin. A P/E of 51.3x 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 0.99 — expect wider price swings.
COST is growing revenue faster at 9.2% — sustainability is the question.
COST generates stronger free cash flow (1.7B), providing more financial flexibility.
Monitor HOUSEHOLD & PERSONAL PRODUCTS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
CL scores higher overall (56/100 vs 53/100). 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.
Colgate-Palmolive Company
CONSUMER DEFENSIVE · HOUSEHOLD & PERSONAL PRODUCTS · USA
Colgate-Palmolive Company is an American multinational consumer products company headquartered on Park Avenue in Midtown Manhattan, New York City. It specializes in the production, distribution and provision of household, health care, personal care and veterinary products.
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 HOUSEHOLD & PERSONAL PRODUCTS Stocks
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