Costco Wholesale Corp (COST)vsAltria Group (MO)
COST
Costco Wholesale Corp
$918.91
+1.56%
CONSUMER DEFENSIVE · Cap: $401.25B
MO
Altria Group
$68.98
+2.36%
CONSUMER DEFENSIVE · Cap: $115.18B
Smart Verdict
WallStSmart Research — data-driven comparison
Costco Wholesale Corp generates 1336% more annual revenue ($293.59B vs $20.44B). MO leads profitability with a 39.0% profit margin vs 3.0%. MO appears more attractively valued with a PEG of 2.60. COST earns a higher WallStSmart Score of 61/100 (C+).
COST
Buy61
out of 100
Grade: C+
MO
Hold47
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for COST.
Margin of Safety
-49.8%
Fair Value
$46.05
Current Price
$68.98
$22.93 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 26 in profit
Revenue surging 21.5% year-over-year
Earnings expanding 45.5% YoY
Generating 2.0B in free cash flow
Keeps 39 of every $100 in revenue as profit
Strong operational efficiency at 76.1%
Conservative balance sheet, low leverage
Large-cap with strong market position
Attractively priced relative to earnings
Areas to Watch
3.0% margin — thin
Operating margin of 3.7%
Expensive relative to growth rate
Premium valuation, high expectations priced in
1.2% revenue growth
ROE of 0.0% — below average capital efficiency
Expensive relative to growth rate
Earnings declined 2.7%
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 : MO
The strongest argument for MO centers on Profit Margin, Operating Margin, Debt/Equity. Profitability is solid with margins at 39.0% and operating margin at 76.1%.
Bear Case : COST
The primary concerns for COST are Profit Margin, Operating Margin, PEG Ratio. A P/E of 45.5x leaves little room for execution misses. Thin 3.0% margins leave little buffer for downturns.
Bear Case : MO
The primary concerns for MO are Revenue Growth, Return on Equity, PEG Ratio.
Key Dynamics to Monitor
COST profiles as a growth stock while MO is a value play — different risk/reward profiles.
COST carries more volatility with a beta of 0.85 — expect wider price swings.
COST is growing revenue faster at 21.5% — sustainability is the question.
COST generates stronger free cash flow (2.0B), providing more financial flexibility.
Bottom Line
COST scores higher overall (61/100 vs 47/100) 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 →Altria Group
CONSUMER DEFENSIVE · TOBACCO · USA
Altria Group, Inc. (previously known as Philip Morris Companies, Inc.) is an American corporation and one of the world's largest producers and marketers of tobacco, cigarettes and related products. It operates worldwide and is headquartered in unincorporated Henrico County, Virginia, just outside the city of Richmond.
Visit Website →Compare with Other DISCOUNT STORES Stocks
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