Costco Wholesale Corp (COST)vsProcter & Gamble Company (PG)
COST
Costco Wholesale Corp
$996.08
+1.36%
CONSUMER DEFENSIVE · Cap: $438.30B
PG
Procter & Gamble Company
$158.26
+1.47%
CONSUMER DEFENSIVE · Cap: $370.12B
Smart Verdict
WallStSmart Research — data-driven comparison
Costco Wholesale Corp generates 248% more annual revenue ($303.15B vs $87.03B). PG leads profitability with a 18.4% profit margin vs 3.0%. PG appears more attractively valued with a PEG of 3.79. COST earns a higher WallStSmart Score of 55/100 (C-).
COST
Buy55
out of 100
Grade: C-
PG
Buy53
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for COST.
Margin of Safety
-58.2%
Fair Value
$101.07
Current Price
$158.26
$57.19 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
Conservative balance sheet, low leverage
Generating 2.5B in free cash flow
Mega-cap, among the largest globally
Safe zone — low bankruptcy risk
Every $100 of equity generates 30 in profit
Strong operational efficiency at 22.1%
Generating 4.4B in free cash flow
Areas to Watch
Trading at 12.3x book value
3.0% margin — thin
Operating margin of 3.8%
Expensive relative to growth rate
1.5% revenue growth
Expensive relative to growth rate
Earnings declined 15.5%
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 11.1% demonstrates continued momentum.
Bull Case : PG
The strongest argument for PG centers on Market Cap, Altman Z-Score, Return on Equity. Profitability is solid with margins at 18.4% and operating margin at 22.1%.
Bear Case : COST
The primary concerns for COST are Price/Book, Profit Margin, Operating Margin. A P/E of 47.6x leaves little room for execution misses. Thin 3.0% margins leave little buffer for downturns.
Bear Case : PG
The primary concerns for PG are Revenue Growth, PEG Ratio, EPS Growth.
Key Dynamics to Monitor
COST carries more volatility with a beta of 0.87 — expect wider price swings.
COST is growing revenue faster at 11.1% — sustainability is the question.
PG generates stronger free cash flow (4.4B), providing more financial flexibility.
Monitor DISCOUNT STORES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
COST scores higher overall (55/100 vs 53/100) and 11.1% revenue growth. Both earn "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 →Procter & Gamble Company
CONSUMER DEFENSIVE · HOUSEHOLD & PERSONAL PRODUCTS · USA
The Procter & Gamble Company (P&G) is an American multinational consumer goods corporation headquartered in Cincinnati, Ohio, founded in 1837 by William Procter and James Gamble. It specializes in a wide range of personal health, consumer health, personal care, and hygiene products; these products are organized into several segments including Beauty; Grooming; Health Care; Fabric & Home Care; and Baby, Feminine, & Family Care. Before the sale of Pringles to Kellogg's, its product portfolio also included food, snacks, and beverages.
Visit Website →Compare with Other DISCOUNT STORES Stocks
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