Costco Wholesale Corp (COST)vsKenon Holdings (KEN)
COST
Costco Wholesale Corp
$1,008.79
-0.32%
CONSUMER DEFENSIVE · Cap: $449.00B
KEN
Kenon Holdings
$88.89
+2.95%
UTILITIES · Cap: $4.50B
Smart Verdict
WallStSmart Research — data-driven comparison
Costco Wholesale Corp generates 32731% more annual revenue ($286.27B vs $871.93M). KEN leads profitability with a 7.6% profit margin vs 3.0%. COST trades at a lower P/E of 52.6x. COST earns a higher WallStSmart Score of 61/100 (C+).
COST
Buy61
out of 100
Grade: C+
KEN
Hold40
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-89.1%
Fair Value
$535.26
Current Price
$1008.79
$473.53 premium
Margin of Safety
-39.5%
Fair Value
$54.68
Current Price
$88.89
$34.21 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
Revenue surging 21.5% year-over-year
Earnings expanding 45.5% YoY
Revenue surging 43.1% year-over-year
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
ROE of 5.1% — below average capital efficiency
7.6% margin — thin
Premium valuation, high expectations priced in
Earnings declined 93.7%
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 : KEN
The strongest argument for KEN centers on Revenue Growth, Price/Book. Revenue growth of 43.1% 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 : KEN
The primary concerns for KEN are Return on Equity, Profit Margin, P/E Ratio. A P/E of 68.0x leaves little room for execution misses.
Key Dynamics to Monitor
COST profiles as a growth stock while KEN is a hypergrowth play — different risk/reward profiles.
COST carries more volatility with a beta of 0.91 — expect wider price swings.
KEN is growing revenue faster at 43.1% — sustainability is the question.
COST generates stronger free cash flow (1.7B), providing more financial flexibility.
Bottom Line
COST scores higher overall (61/100 vs 40/100) and 21.5% revenue growth. Both earn "Buy" and "Hold" 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 →Kenon Holdings
UTILITIES · UTILITIES - INDEPENDENT POWER PRODUCERS · USA
Kenon Holdings Ltd., is the owner, developer and operator of power generation facilities in Israel and internationally. The company is headquartered in Singapore.
Visit Website →Compare with Other DISCOUNT STORES Stocks
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