Costco Wholesale Corp (COST)vsHumana Inc (HUM)
COST
Costco Wholesale Corp
$971.87
-1.46%
CONSUMER DEFENSIVE · Cap: $434.37B
HUM
Humana Inc
$350.08
+0.08%
HEALTHCARE · Cap: $45.53B
Smart Verdict
WallStSmart Research — data-driven comparison
Costco Wholesale Corp generates 114% more annual revenue ($293.59B vs $137.20B). COST leads profitability with a 3.0% profit margin vs 0.8%. HUM appears more attractively valued with a PEG of 2.15. COST earns a higher WallStSmart Score of 61/100 (C+).
COST
Buy61
out of 100
Grade: C+
HUM
Buy52
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for COST.
Margin of Safety
+23.7%
Fair Value
$403.67
Current Price
$350.08
$53.59 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 27 in profit
Revenue surging 21.5% year-over-year
Earnings expanding 45.5% YoY
Generating 2.0B in free cash flow
Safe zone — low bankruptcy risk
Reasonable price relative to book value
Revenue surging 23.5% year-over-year
Generating 1.1B in free cash flow
Areas to Watch
3.0% margin — thin
Operating margin of 3.7%
Expensive relative to growth rate
Premium valuation, high expectations priced in
Expensive relative to growth rate
ROE of 6.1% — below average capital efficiency
0.8% margin — thin
Operating margin of 4.7%
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 : HUM
The strongest argument for HUM centers on Altman Z-Score, Price/Book, Revenue Growth. Revenue growth of 23.5% demonstrates continued momentum.
Bear Case : COST
The primary concerns for COST are Profit Margin, Operating Margin, PEG Ratio. A P/E of 49.3x leaves little room for execution misses. Thin 3.0% margins leave little buffer for downturns.
Bear Case : HUM
The primary concerns for HUM are PEG Ratio, Return on Equity, Profit Margin. A P/E of 40.5x leaves little room for execution misses. Thin 0.8% margins leave little buffer for downturns.
Key Dynamics to Monitor
COST carries more volatility with a beta of 0.87 — expect wider price swings.
HUM is growing revenue faster at 23.5% — sustainability is the question.
COST generates stronger free cash flow (2.0B), providing more financial flexibility.
Monitor DISCOUNT STORES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
COST scores higher overall (61/100 vs 52/100) and 21.5% revenue growth. HUM offers better value entry with a 23.7% margin of safety. 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 →Humana Inc
HEALTHCARE · HEALTHCARE PLANS · USA
Humana Inc. is a for-profit American health insurance company based in Louisville, Kentucky.
Visit Website →Compare with Other DISCOUNT STORES Stocks
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