Costco Wholesale Corp (COST)vsGeneral Mills Inc (GIS)
COST
Costco Wholesale Corp
$982.73
-0.95%
CONSUMER DEFENSIVE · Cap: $438.30B
GIS
General Mills Inc
$33.05
-1.25%
CONSUMER DEFENSIVE · Cap: $17.71B
Smart Verdict
WallStSmart Research — data-driven comparison
Costco Wholesale Corp generates 1557% more annual revenue ($303.15B vs $18.30B). COST leads profitability with a 3.0% profit margin vs -4.9%. COST appears more attractively valued with a PEG of 4.43. COST earns a higher WallStSmart Score of 55/100 (C-).
COST
Buy55
out of 100
Grade: C-
GIS
Hold42
out of 100
Grade: D
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 26 in profit
Conservative balance sheet, low leverage
Generating 2.5B in free cash flow
Reasonable price relative to book value
Areas to Watch
Trading at 12.2x book value
3.0% margin — thin
Operating margin of 3.8%
Expensive relative to growth rate
Grey zone — moderate risk
Elevated debt levels
Expensive relative to growth rate
ROE of -12.0% — 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. Revenue growth of 11.1% demonstrates continued momentum.
Bull Case : GIS
The strongest argument for GIS centers on Price/Book.
Bear Case : COST
The primary concerns for COST are Price/Book, Profit Margin, Operating Margin. A P/E of 47.6x leaves little room for execution misses. Thin 3.0% margins leave little buffer for downturns.
Bear Case : GIS
The primary concerns for GIS are Altman Z-Score, Debt/Equity, PEG Ratio. Debt-to-equity of 1.83 is elevated, increasing financial risk.
Key Dynamics to Monitor
COST profiles as a value stock while GIS is a turnaround play — different risk/reward profiles.
COST carries more volatility with a beta of 0.87 — expect wider price swings.
COST is growing revenue faster at 11.1% — sustainability is the question.
COST generates stronger free cash flow (2.5B), providing more financial flexibility.
Bottom Line
COST scores higher overall (55/100 vs 42/100) and 11.1% revenue growth. 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 →General Mills Inc
CONSUMER DEFENSIVE · PACKAGED FOODS · USA
General Mills, Inc., is an American multinational manufacturer and marketer of branded consumer foods sold through retail stores. It is headquartered in Golden Valley, Minnesota, a suburb of Minneapolis.
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