Costco Wholesale Corp (COST)vsIDEXX Laboratories Inc (IDXX)
COST
Costco Wholesale Corp
$974.86
+0.49%
CONSUMER DEFENSIVE · Cap: $432.25B
IDXX
IDEXX Laboratories Inc
$575.72
+0.97%
HEALTHCARE · Cap: $45.53B
Smart Verdict
WallStSmart Research — data-driven comparison
Costco Wholesale Corp generates 6552% more annual revenue ($286.27B vs $4.30B). IDXX leads profitability with a 24.6% profit margin vs 3.0%. IDXX appears more attractively valued with a PEG of 3.97. IDXX earns a higher WallStSmart Score of 61/100 (C+).
COST
Buy53
out of 100
Grade: C-
IDXX
Buy61
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-74.7%
Fair Value
$558.15
Current Price
$974.86
$416.71 premium
Margin of Safety
-40.2%
Fair Value
$462.85
Current Price
$575.72
$112.87 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
Every $100 of equity generates 66 in profit
Keeps 25 of every $100 in revenue as profit
Strong operational efficiency at 29.8%
Areas to Watch
Trading at 13.5x book value
3.0% margin — thin
Operating margin of 3.7%
Expensive relative to growth rate
Expensive relative to growth rate
Premium valuation, high expectations priced in
Trading at 28.6x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : COST
The strongest argument for COST centers on Market Cap, Altman Z-Score, Return on Equity.
Bull Case : IDXX
The strongest argument for IDXX centers on Return on Equity, Profit Margin, Operating Margin. Profitability is solid with margins at 24.6% and operating margin at 29.8%. Revenue growth of 14.3% demonstrates continued momentum.
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 : IDXX
The primary concerns for IDXX are PEG Ratio, P/E Ratio, Price/Book. A P/E of 43.7x leaves little room for execution misses.
Key Dynamics to Monitor
COST profiles as a value stock while IDXX is a mature play — different risk/reward profiles.
IDXX carries more volatility with a beta of 1.70 — expect wider price swings.
IDXX is growing revenue faster at 14.3% — sustainability is the question.
COST generates stronger free cash flow (1.7B), providing more financial flexibility.
Bottom Line
IDXX scores higher overall (61/100 vs 53/100), backed by strong 24.6% margins and 14.3% revenue growth. 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 →IDEXX Laboratories Inc
HEALTHCARE · DIAGNOSTICS & RESEARCH · USA
IDEXX Laboratories, Inc. is an American multinational corporation engaged in the development, manufacture, and distribution of products and services for the companion animal veterinary, livestock and poultry, water testing, and dairy markets.
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