WallStSmart

Canadian Imperial Bank Of Commerce (CM)vsCostco Wholesale Corp (COST)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Costco Wholesale Corp generates 926% more annual revenue ($286.27B vs $27.91B). CM leads profitability with a 33.5% profit margin vs 3.0%. CM appears more attractively valued with a PEG of 2.10. CM earns a higher WallStSmart Score of 73/100 (B).

CM

Strong Buy

73

out of 100

Grade: B

Growth: 9.3Profit: 7.5Value: 5.7Quality: 3.0
Piotroski: 5/9Altman Z: -0.62

COST

Buy

61

out of 100

Grade: C+

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

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CM6 strengths · Avg: 8.8/10
Profit MarginProfitability
33.5%10/10

Keeps 34 of every $100 in revenue as profit

Operating MarginProfitability
44.7%10/10

Strong operational efficiency at 44.7%

Market CapQuality
$106.24B9/10

Large-cap with strong market position

P/E RatioValuation
16.6x8/10

Attractively priced relative to earnings

Price/BookValuation
2.2x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
16.7%8/10

16.7% revenue growth

COST6 strengths · Avg: 9.0/10
Market CapQuality
$458.33B10/10

Mega-cap, among the largest globally

Altman Z-ScoreHealth
4.8410/10

Safe zone — low bankruptcy risk

Return on EquityProfitability
26.6%9/10

Every $100 of equity generates 27 in profit

Debt/EquityHealth
0.269/10

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

CM4 concerns · Avg: 2.3/10
PEG RatioValuation
2.104/10

Expensive relative to growth rate

Free Cash FlowQuality
$-2.49B2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
-0.622/10

Distress zone — elevated risk

Debt/EquityHealth
2.661/10

Elevated debt levels

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
5.122/10

Expensive relative to growth rate

P/E RatioValuation
53.8x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : CM

The strongest argument for CM centers on Profit Margin, Operating Margin, Market Cap. Profitability is solid with margins at 33.5% and operating margin at 44.7%. Revenue growth of 16.7% demonstrates continued momentum.

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 : CM

The primary concerns for CM are PEG Ratio, Free Cash Flow, Altman Z-Score. Debt-to-equity of 2.66 is elevated, increasing financial risk.

Bear Case : COST

The primary concerns for COST are Profit Margin, Operating Margin, PEG Ratio. A P/E of 53.8x leaves little room for execution misses. Thin 3.0% margins leave little buffer for downturns.

Key Dynamics to Monitor

CM carries more volatility with a beta of 1.30 — 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.

Monitor BANKS - DIVERSIFIED industry trends, competitive dynamics, and regulatory changes.

Bottom Line

CM scores higher overall (73/100 vs 61/100), backed by strong 33.5% margins and 16.7% revenue growth. Both earn "Strong 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.

Canadian Imperial Bank Of Commerce

FINANCIAL SERVICES · BANKS - DIVERSIFIED · USA

Canadian Imperial Bank of Commerce, a diversified financial institution, offers a variety of financial products and services to personal, commercial, public sector, and institutional clients in Canada, the United States, and internationally. The company is headquartered in Toronto, Canada.

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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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