Costco Wholesale Corp (COST)vsFlex Ltd (FLEX)
COST
Costco Wholesale Corp
$974.86
+0.11%
CONSUMER DEFENSIVE · Cap: $432.25B
FLEX
Flex Ltd
$70.02
+1.34%
TECHNOLOGY · Cap: $25.55B
Smart Verdict
WallStSmart Research — data-driven comparison
Costco Wholesale Corp generates 967% more annual revenue ($286.27B vs $26.83B). FLEX leads profitability with a 3.2% profit margin vs 3.0%. FLEX appears more attractively valued with a PEG of 0.94. FLEX earns a higher WallStSmart Score of 57/100 (C).
COST
Buy53
out of 100
Grade: C-
FLEX
Buy57
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-74.7%
Fair Value
$558.15
Current Price
$974.86
$416.71 premium
Margin of Safety
-327.7%
Fair Value
$15.16
Current Price
$70.02
$54.86 premium
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
Growing faster than its price suggests
Areas to Watch
Trading at 13.5x book value
3.0% margin — thin
Operating margin of 3.7%
Expensive relative to growth rate
Premium valuation, high expectations priced in
3.2% margin — thin
Elevated debt levels
Earnings declined 4.5%
Comparative Analysis Report
WallStSmart ResearchBull Case : COST
The strongest argument for COST centers on Market Cap, Altman Z-Score, Return on Equity.
Bull Case : FLEX
The strongest argument for FLEX centers on PEG Ratio. PEG of 0.94 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 50.7x leaves little room for execution misses. Thin 3.0% margins leave little buffer for downturns.
Bear Case : FLEX
The primary concerns for FLEX are P/E Ratio, Profit Margin, Debt/Equity. Thin 3.2% margins leave little buffer for downturns.
Key Dynamics to Monitor
FLEX carries more volatility with a beta of 1.25 — 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 DISCOUNT STORES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
FLEX scores higher overall (57/100 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 →Flex Ltd
TECHNOLOGY · ELECTRONIC COMPONENTS · USA
Flex Ltd. provides design, engineering, manufacturing and supply chain services and solutions to OEMs in Asia, the Americas and Europe. The company is headquartered in Singapore.
Visit Website →Compare with Other DISCOUNT STORES Stocks
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