Costco Wholesale Corp (COST)vsDollar Tree Inc (DLTR)
COST
Costco Wholesale Corp
$972.33
-0.25%
CONSUMER DEFENSIVE · Cap: $444.46B
DLTR
Dollar Tree Inc
$105.92
+0.34%
CONSUMER DEFENSIVE · Cap: $21.92B
Smart Verdict
WallStSmart Research — data-driven comparison
Costco Wholesale Corp generates 1410% more annual revenue ($286.27B vs $18.96B). COST leads profitability with a 3.0% profit margin vs -15.4%. DLTR appears more attractively valued with a PEG of 1.12. DLTR earns a higher WallStSmart Score of 56/100 (C).
COST
Buy53
out of 100
Grade: C-
DLTR
Buy56
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-74.5%
Fair Value
$558.44
Current Price
$972.33
$413.89 premium
Margin of Safety
+0.4%
Fair Value
$125.45
Current Price
$105.92
$19.53 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
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
Every $100 of equity generates 20 in profit
Areas to Watch
Trading at 13.4x book value
3.0% margin — thin
Operating margin of 3.7%
Expensive relative to growth rate
Grey zone — moderate risk
Elevated debt levels
Currently unprofitable
Comparative Analysis Report
WallStSmart ResearchBull Case : COST
The strongest argument for COST centers on Market Cap, Altman Z-Score, Return on Equity.
Bull Case : DLTR
The strongest argument for DLTR centers on Return on Equity. PEG of 1.12 suggests the stock is reasonably priced for its growth.
Bear Case : COST
The primary concerns for COST are Price/Book, Profit Margin, Operating Margin. A P/E of 52.1x leaves little room for execution misses. Thin 3.0% margins leave little buffer for downturns.
Bear Case : DLTR
The primary concerns for DLTR are Altman Z-Score, Debt/Equity, Profit Margin. Debt-to-equity of 1.51 is elevated, increasing financial risk.
Key Dynamics to Monitor
COST profiles as a value stock while DLTR is a turnaround play — different risk/reward profiles.
COST carries more volatility with a beta of 0.99 — expect wider price swings.
DLTR is growing revenue faster at 9.4% — sustainability is the question.
COST generates stronger free cash flow (1.7B), providing more financial flexibility.
Bottom Line
DLTR 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.
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 →Dollar Tree Inc
CONSUMER DEFENSIVE · DISCOUNT STORES · USA
Dollar Tree is an American chain of discount variety stores that sells items for $1 or less, headquartered in Chesapeake, Virginia.
Visit Website →Compare with Other DISCOUNT STORES Stocks
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