Costco Wholesale Corp (COST)vsJPMorgan Chase & Co (JPM)
COST
Costco Wholesale Corp
$1,008.79
-0.32%
CONSUMER DEFENSIVE · Cap: $449.00B
JPM
JPMorgan Chase & Co
$302.10
-1.36%
FINANCIAL SERVICES · Cap: $820.65B
Smart Verdict
WallStSmart Research — data-driven comparison
Costco Wholesale Corp generates 65% more annual revenue ($286.27B vs $173.56B). JPM leads profitability with a 33.9% profit margin vs 3.0%. JPM appears more attractively valued with a PEG of 1.67. JPM earns a higher WallStSmart Score of 73/100 (B).
COST
Buy61
out of 100
Grade: C+
JPM
Strong Buy73
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-89.1%
Fair Value
$535.26
Current Price
$1008.79
$473.53 premium
Intrinsic value data unavailable for JPM.
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
Mega-cap, among the largest globally
Keeps 34 of every $100 in revenue as profit
Strong operational efficiency at 43.7%
Attractively priced relative to earnings
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
Expensive relative to growth rate
Elevated debt levels
Negative free cash flow — burning cash
Distress zone — elevated risk
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 : JPM
The strongest argument for JPM centers on Market Cap, Profit Margin, Operating Margin. Profitability is solid with margins at 33.9% and operating margin at 43.7%. Revenue growth of 12.7% demonstrates continued momentum.
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 : JPM
The primary concerns for JPM are PEG Ratio, Debt/Equity, Free Cash Flow.
Key Dynamics to Monitor
COST profiles as a growth stock while JPM is a mature play — different risk/reward profiles.
JPM carries more volatility with a beta of 1.02 — 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
JPM scores higher overall (73/100 vs 61/100), backed by strong 33.9% margins and 12.7% 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 →JPMorgan Chase & Co
FINANCIAL SERVICES · BANKS - DIVERSIFIED · USA
JPMorgan Chase & Co. is an American multinational investment bank and financial services holding company headquartered in New York City. JPMorgan Chase is incorporated in Delaware. As a Bulge Bracket bank, it is a major provider of various investment banking and financial services. It is one of America's Big Four banks, along with Bank of America, Citigroup, and Wells Fargo. JPMorgan Chase is considered to be a universal bank and a custodian bank. The J.P. Morgan brand is used by the investment banking, asset management, private banking, private wealth management, and treasury services divisions.
Visit Website →Compare with Other DISCOUNT STORES Stocks
Want to dig deeper into these stocks?