Costco Wholesale Corp (COST)vsHershey Co (HSY)
COST
Costco Wholesale Corp
$971.87
+0.68%
CONSUMER DEFENSIVE · Cap: $423.23B
HSY
Hershey Co
$184.58
+1.02%
CONSUMER DEFENSIVE · Cap: $36.85B
Smart Verdict
WallStSmart Research — data-driven comparison
Costco Wholesale Corp generates 2348% more annual revenue ($293.59B vs $11.99B). HSY leads profitability with a 9.1% profit margin vs 3.0%. HSY appears more attractively valued with a PEG of 1.04. HSY earns a higher WallStSmart Score of 69/100 (B-).
COST
Buy61
out of 100
Grade: C+
HSY
Strong Buy69
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for COST.
Margin of Safety
-23.2%
Fair Value
$187.44
Current Price
$184.58
$2.86 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 27 in profit
Revenue surging 21.5% year-over-year
Earnings expanding 45.5% YoY
Generating 2.0B in free cash flow
Earnings expanding 93.6% YoY
Every $100 of equity generates 23 in profit
Strong operational efficiency at 21.3%
Areas to Watch
3.0% margin — thin
Operating margin of 3.7%
Expensive relative to growth rate
Premium valuation, high expectations priced in
Premium valuation, high expectations priced in
Elevated debt levels
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 : HSY
The strongest argument for HSY centers on EPS Growth, Return on Equity, Operating Margin. Revenue growth of 10.6% demonstrates continued momentum. PEG of 1.04 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 48.1x leaves little room for execution misses. Thin 3.0% margins leave little buffer for downturns.
Bear Case : HSY
The primary concerns for HSY are P/E Ratio, Debt/Equity, Piotroski F-Score.
Key Dynamics to Monitor
COST profiles as a growth stock while HSY is a value play — different risk/reward profiles.
COST carries more volatility with a beta of 0.91 — expect wider price swings.
COST is growing revenue faster at 21.5% — sustainability is the question.
COST generates stronger free cash flow (2.0B), providing more financial flexibility.
Bottom Line
HSY scores higher overall (69/100 vs 61/100) and 10.6% revenue growth. Both earn "Strong 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 →Hershey Co
CONSUMER DEFENSIVE · CONFECTIONERS · USA
The Hershey Company, commonly known as Hershey's, is an American multinational company and one of the largest chocolate manufacturers in the world. It also manufactures baked products, such as cookies and cakes, and sells beverages like milkshakes, and many more that are produced globally. Its headquarters are in Hershey, Pennsylvania.
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