Costco Wholesale Corp (COST)vsHershey Co (HSY)
COST
Costco Wholesale Corp
$973.82
+0.11%
CONSUMER DEFENSIVE · Cap: $432.25B
HSY
Hershey Co
$215.20
+0.01%
CONSUMER DEFENSIVE · Cap: $42.61B
Smart Verdict
WallStSmart Research — data-driven comparison
Costco Wholesale Corp generates 2348% more annual revenue ($286.27B vs $11.69B). HSY leads profitability with a 7.5% profit margin vs 3.0%. HSY appears more attractively valued with a PEG of 1.20. COST earns a higher WallStSmart Score of 53/100 (C-).
COST
Buy53
out of 100
Grade: C-
HSY
Buy51
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-74.7%
Fair Value
$558.15
Current Price
$973.82
$415.67 premium
Margin of Safety
-680.4%
Fair Value
$29.58
Current Price
$215.20
$185.62 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
No standout strengths identified
Areas to Watch
Trading at 13.5x book value
3.0% margin — thin
Operating margin of 3.7%
Expensive relative to growth rate
Trading at 9.4x book value
7.5% margin — thin
Weak financial health signals
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : COST
The strongest argument for COST centers on Market Cap, Altman Z-Score, Return on Equity.
Bull Case : HSY
PEG of 1.20 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 : HSY
The primary concerns for HSY are Price/Book, Profit Margin, Piotroski F-Score. A P/E of 48.3x leaves little room for execution misses.
Key Dynamics to Monitor
COST carries more volatility with a beta of 0.99 — 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
COST scores higher overall (53/100 vs 51/100). 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 →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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