Costco Wholesale Corp (COST)vsHerbalife Nutrition Ltd (HLF)
COST
Costco Wholesale Corp
$1,014.53
+1.59%
CONSUMER DEFENSIVE · Cap: $450.10B
HLF
Herbalife Nutrition Ltd
$16.60
+3.88%
CONSUMER DEFENSIVE · Cap: $1.65B
Smart Verdict
WallStSmart Research — data-driven comparison
Costco Wholesale Corp generates 5583% more annual revenue ($286.27B vs $5.04B). HLF leads profitability with a 4.5% profit margin vs 3.0%. HLF appears more attractively valued with a PEG of 0.62. COST earns a higher WallStSmart Score of 61/100 (C+).
COST
Buy61
out of 100
Grade: C+
HLF
Hold45
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for COST.
Margin of Safety
+73.5%
Fair Value
$62.45
Current Price
$16.60
$45.85 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
Attractively priced relative to earnings
Conservative balance sheet, low leverage
Growing faster than its price suggests
Areas to Watch
3.0% margin — thin
Operating margin of 3.7%
Expensive relative to growth rate
Premium valuation, high expectations priced in
Smaller company, higher risk/reward
ROE of 0.0% — below average capital efficiency
4.5% margin — thin
Weak financial health signals
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 : HLF
The strongest argument for HLF centers on P/E Ratio, Debt/Equity, PEG Ratio. PEG of 0.62 suggests the stock is reasonably priced for its 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 : HLF
The primary concerns for HLF are Market Cap, Return on Equity, Profit Margin. Thin 4.5% margins leave little buffer for downturns.
Key Dynamics to Monitor
COST profiles as a growth stock while HLF is a value play — different risk/reward profiles.
COST carries more volatility with a beta of 0.98 — 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 45/100) and 21.5% revenue growth. HLF offers better value entry with a 73.5% 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 →Herbalife Nutrition Ltd
CONSUMER DEFENSIVE · PACKAGED FOODS · USA
Herbalife Nutrition Ltd. offers nutrition solutions in North America, Mexico, South and Central America, Europe, the Middle East, Africa, and Asia Pacific. The company is headquartered in Los Angeles, California.
Visit Website →Compare with Other DISCOUNT STORES Stocks
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