Costco Wholesale Corp (COST)vsMagnite Inc (MGNI)
COST
Costco Wholesale Corp
$974.86
+0.11%
CONSUMER DEFENSIVE · Cap: $432.25B
MGNI
Magnite Inc
$12.11
+0.67%
COMMUNICATION SERVICES · Cap: $1.75B
Smart Verdict
WallStSmart Research — data-driven comparison
Costco Wholesale Corp generates 39996% more annual revenue ($286.27B vs $713.95M). MGNI leads profitability with a 20.3% profit margin vs 3.0%. MGNI trades at a lower P/E of 12.8x. MGNI earns a higher WallStSmart Score of 68/100 (B-).
COST
Buy53
out of 100
Grade: C-
MGNI
Strong Buy68
out of 100
Grade: B-
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
+73.5%
Fair Value
$44.46
Current Price
$12.11
$32.35 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 30 in profit
Conservative balance sheet, low leverage
Generating 1.7B in free cash flow
Earnings expanding 230.0% YoY
Keeps 20 of every $100 in revenue as profit
Attractively priced relative to earnings
Reasonable price relative to book value
Strong operational efficiency at 25.4%
Areas to Watch
Trading at 13.5x book value
3.0% margin — thin
Operating margin of 3.7%
Expensive relative to growth rate
Smaller company, higher risk/reward
Comparative Analysis Report
WallStSmart ResearchBull Case : COST
The strongest argument for COST centers on Market Cap, Altman Z-Score, Return on Equity.
Bull Case : MGNI
The strongest argument for MGNI centers on EPS Growth, Profit Margin, P/E Ratio. Profitability is solid with margins at 20.3% and operating margin at 25.4%.
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 : MGNI
The primary concerns for MGNI are Market Cap.
Key Dynamics to Monitor
COST profiles as a value stock while MGNI is a mature play — different risk/reward profiles.
MGNI carries more volatility with a beta of 2.40 — 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.
Bottom Line
MGNI scores higher overall (68/100 vs 53/100), backed by strong 20.3% margins. 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 →Magnite Inc
COMMUNICATION SERVICES · ADVERTISING AGENCIES · USA
Magnite, Inc. operates an independent sales advertising platform in the United States and internationally. The company is headquartered in Los Angeles, California.
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