Costco Wholesale Corp (COST)vsEuropean Wax Center Inc (EWCZ)
COST
Costco Wholesale Corp
$1,014.53
+1.59%
CONSUMER DEFENSIVE · Cap: $450.10B
EWCZ
European Wax Center Inc
$5.80
0.00%
CONSUMER DEFENSIVE · Cap: $257.70M
Smart Verdict
WallStSmart Research — data-driven comparison
Costco Wholesale Corp generates 138443% more annual revenue ($286.27B vs $206.63M). EWCZ leads profitability with a 4.2% profit margin vs 3.0%. EWCZ trades at a lower P/E of 29.1x. COST earns a higher WallStSmart Score of 61/100 (C+).
COST
Buy61
out of 100
Grade: C+
EWCZ
Hold48
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for COST.
Margin of Safety
+53.5%
Fair Value
$12.31
Current Price
$5.80
$6.51 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
Revenue surging 21.5% year-over-year
Earnings expanding 45.5% YoY
Earnings expanding 195.6% YoY
Areas to Watch
3.0% margin — thin
Operating margin of 3.7%
Expensive relative to growth rate
Premium valuation, high expectations priced in
Moderate valuation
Smaller company, higher risk/reward
4.2% margin — thin
Revenue declined 9.3%
Comparative Analysis Report
WallStSmart ResearchBull 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.
Bull Case : EWCZ
The strongest argument for EWCZ centers on EPS Growth.
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.
Bear Case : EWCZ
The primary concerns for EWCZ are P/E Ratio, Market Cap, Profit Margin. Thin 4.2% margins leave little buffer for downturns.
Key Dynamics to Monitor
COST profiles as a growth stock while EWCZ is a value play — different risk/reward profiles.
EWCZ carries more volatility with a beta of 1.42 — 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 48/100) and 21.5% revenue growth. EWCZ offers better value entry with a 53.5% 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.
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 →European Wax Center Inc
CONSUMER DEFENSIVE · HOUSEHOLD & PERSONAL PRODUCTS · USA
European Wax Center, Inc. is a franchised holding company of EWC Ventures, LLC that operates out-of-home waxing services in the United States. The company is headquartered in Plano, Texas.
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