WallStSmart

Costco Wholesale Corp (COST)vsThe Magnum Ice Cream Company N.V. (MICC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Costco Wholesale Corp generates 3519% more annual revenue ($286.27B vs $7.91B). MICC leads profitability with a 3.7% profit margin vs 3.0%. MICC appears more attractively valued with a PEG of 0.56. COST earns a higher WallStSmart Score of 61/100 (C+).

COST

Buy

61

out of 100

Grade: C+

Growth: 8.0Profit: 6.5Value: 2.0Quality: 7.5
Piotroski: 4/9Altman Z: 4.84

MICC

Hold

49

out of 100

Grade: D+

Growth: 4.0Profit: 6.5Value: 7.3Quality: 5.8
Piotroski: 3/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

COSTSignificantly Overvalued (-89.9%)

Margin of Safety

-89.9%

Fair Value

$532.85

Current Price

$1014.53

$481.68 premium

UndervaluedFair: $532.85Overvalued
MICCUndervalued (+18.6%)

Margin of Safety

+18.6%

Fair Value

$20.02

Current Price

$14.85

$5.17 discount

UndervaluedFair: $20.02Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

COST6 strengths · Avg: 9.0/10
Market CapQuality
$450.10B10/10

Mega-cap, among the largest globally

Altman Z-ScoreHealth
4.8410/10

Safe zone — low bankruptcy risk

Return on EquityProfitability
29.6%9/10

Every $100 of equity generates 30 in profit

Debt/EquityHealth
0.279/10

Conservative balance sheet, low leverage

Revenue GrowthGrowth
21.5%8/10

Revenue surging 21.5% year-over-year

EPS GrowthGrowth
45.5%8/10

Earnings expanding 45.5% YoY

MICC2 strengths · Avg: 8.5/10
Debt/EquityHealth
0.179/10

Conservative balance sheet, low leverage

PEG RatioValuation
0.568/10

Growing faster than its price suggests

Areas to Watch

COST4 concerns · Avg: 2.5/10
Profit MarginProfitability
3.0%3/10

3.0% margin — thin

Operating MarginProfitability
3.7%3/10

Operating margin of 3.7%

PEG RatioValuation
5.532/10

Expensive relative to growth rate

P/E RatioValuation
52.6x2/10

Premium valuation, high expectations priced in

MICC4 concerns · Avg: 3.5/10
Price/BookValuation
12.6x4/10

Trading at 12.6x book value

EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Profit MarginProfitability
3.7%3/10

3.7% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull 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 : MICC

The strongest argument for MICC centers on Debt/Equity, PEG Ratio. PEG of 0.56 suggests the stock is reasonably priced for its growth.

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 : MICC

The primary concerns for MICC are Price/Book, EPS Growth, Profit Margin. Thin 3.7% margins leave little buffer for downturns.

Key Dynamics to Monitor

COST profiles as a growth stock while MICC is a value play — different risk/reward profiles.

COST is growing revenue faster at 21.5% — sustainability is the question.

COST generates stronger free cash flow (1.7B), providing more financial flexibility.

Monitor DISCOUNT STORES industry trends, competitive dynamics, and regulatory changes.

Bottom Line

COST scores higher overall (61/100 vs 49/100) and 21.5% revenue growth. MICC offers better value entry with a 18.6% margin of safety. 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.

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The Magnum Ice Cream Company N.V.

CONSUMER DEFENSIVE · PACKAGED FOODS · USA

The Magnum Ice Cream Company N.V. engages in ice cream business. The company is headquartered in Amsterdam, Noord-Holland, Netherlands.

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