Costco Wholesale Corp (COST)vsEstee Lauder Companies Inc (EL)
COST
Costco Wholesale Corp
$983.86
+1.29%
CONSUMER DEFENSIVE · Cap: $436.71B
EL
Estee Lauder Companies Inc
$67.23
-3.61%
CONSUMER DEFENSIVE · Cap: $24.32B
Smart Verdict
WallStSmart Research — data-driven comparison
Costco Wholesale Corp generates 1851% more annual revenue ($286.27B vs $14.67B). COST leads profitability with a 3.0% profit margin vs -1.2%. EL appears more attractively valued with a PEG of 1.77. COST earns a higher WallStSmart Score of 53/100 (C-).
COST
Buy53
out of 100
Grade: C-
EL
Hold41
out of 100
Grade: D
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-76.5%
Fair Value
$557.28
Current Price
$983.86
$426.58 premium
Intrinsic value data unavailable for EL.
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
Generating 1.0B in free cash flow
Areas to Watch
Trading at 13.6x book value
3.0% margin — thin
Operating margin of 3.7%
Expensive relative to growth rate
Expensive relative to growth rate
Distress zone — elevated risk
Weak financial health signals
ROE of -4.3% — below average capital efficiency
Comparative Analysis Report
WallStSmart ResearchBull Case : COST
The strongest argument for COST centers on Market Cap, Altman Z-Score, Return on Equity.
Bull Case : EL
The strongest argument for EL centers on Free Cash Flow.
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.
Bear Case : EL
The primary concerns for EL are PEG Ratio, Altman Z-Score, Piotroski F-Score. Debt-to-equity of 2.74 is elevated, increasing financial risk.
Key Dynamics to Monitor
COST profiles as a value stock while EL is a turnaround play — different risk/reward profiles.
EL carries more volatility with a beta of 1.11 — 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.
Bottom Line
COST scores higher overall (53/100 vs 41/100). 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.
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 →Estee Lauder Companies Inc
CONSUMER DEFENSIVE · HOUSEHOLD & PERSONAL PRODUCTS · USA
The Estee Lauder Companies Inc. is an American multinational manufacturer and marketer of prestige skincare, makeup, fragrance and hair care products, based in Midtown Manhattan, New York City. The company owns a diverse portfolio of brands, distributed internationally through both digital commerce and retail channels.
Visit Website →Compare with Other DISCOUNT STORES Stocks
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