Costco Wholesale Corp (COST)vsPACCAR Inc (PCAR)
COST
Costco Wholesale Corp
$974.86
+0.11%
CONSUMER DEFENSIVE · Cap: $432.25B
PCAR
PACCAR Inc
$116.34
+0.47%
INDUSTRIALS · Cap: $60.90B
Smart Verdict
WallStSmart Research — data-driven comparison
Costco Wholesale Corp generates 906% more annual revenue ($286.27B vs $28.44B). PCAR leads profitability with a 8.3% profit margin vs 3.0%. PCAR appears more attractively valued with a PEG of 1.11. COST earns a higher WallStSmart Score of 53/100 (C-).
COST
Buy53
out of 100
Grade: C-
PCAR
Hold46
out of 100
Grade: D+
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
-321.2%
Fair Value
$30.74
Current Price
$116.34
$85.60 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
Generating 1.7B in free cash flow
Large-cap with strong market position
Areas to Watch
Trading at 13.5x book value
3.0% margin — thin
Operating margin of 3.7%
Expensive relative to growth rate
Moderate valuation
Weak financial health signals
Revenue declined 13.7%
Earnings declined 35.9%
Comparative Analysis Report
WallStSmart ResearchBull Case : COST
The strongest argument for COST centers on Market Cap, Altman Z-Score, Return on Equity.
Bull Case : PCAR
The strongest argument for PCAR centers on Market Cap. PEG of 1.11 suggests the stock is reasonably priced for its growth.
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 : PCAR
The primary concerns for PCAR are P/E Ratio, Piotroski F-Score, Revenue Growth.
Key Dynamics to Monitor
PCAR carries more volatility with a beta of 1.05 — 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.
Monitor DISCOUNT STORES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
COST scores higher overall (53/100 vs 46/100). 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 →PACCAR Inc
INDUSTRIALS · FARM & HEAVY CONSTRUCTION MACHINERY · USA
PACCAR Inc is an American Fortune 500 company and counts among the largest manufacturers of medium- and heavy-duty trucks in the world. PACCAR is engaged in the design, manufacture and customer support of light-, medium- and heavy-duty trucks under the Kenworth, Peterbilt, Leyland Trucks, and DAF nameplates. PACCAR also designs and manufactures powertrains, provides financial services and information technology, and distributes truck parts related to its principal business.
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