Costco Wholesale Corp (COST)vsHonest Company Inc (HNST)
COST
Costco Wholesale Corp
$1,014.53
+1.59%
CONSUMER DEFENSIVE · Cap: $450.10B
HNST
Honest Company Inc
$3.50
+5.74%
CONSUMER DEFENSIVE · Cap: $391.41M
Smart Verdict
WallStSmart Research — data-driven comparison
Costco Wholesale Corp generates 76995% more annual revenue ($286.27B vs $371.32M). COST leads profitability with a 3.0% profit margin vs -4.2%. COST earns a higher WallStSmart Score of 61/100 (C+).
COST
Buy61
out of 100
Grade: C+
HNST
Hold37
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for COST.
Margin of Safety
+58.2%
Fair Value
$5.12
Current Price
$3.50
$1.62 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 329.7% YoY
Conservative balance sheet, low leverage
Reasonable price relative to book value
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
Operating margin of 1.3%
Weak financial health signals
ROE of -9.1% — 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 21.5% demonstrates continued momentum.
Bull Case : HNST
The strongest argument for HNST centers on EPS Growth, Debt/Equity, Price/Book.
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 : HNST
The primary concerns for HNST are Market Cap, Operating Margin, Piotroski F-Score.
Key Dynamics to Monitor
COST profiles as a growth stock while HNST is a turnaround play — different risk/reward profiles.
HNST carries more volatility with a beta of 2.16 — 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 37/100) and 21.5% revenue growth. HNST offers better value entry with a 58.2% 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 →Honest Company Inc
CONSUMER DEFENSIVE · HOUSEHOLD & PERSONAL PRODUCTS · USA
The Honest Company, Inc. manufactures and sells baby, beauty and personal care products. The company is headquartered in Los Angeles, California.
Visit Website →Compare with Other DISCOUNT STORES Stocks
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