Costco Wholesale Corp (COST)vsRLX Technology Inc (RLX)
COST
Costco Wholesale Corp
$982.73
-0.95%
CONSUMER DEFENSIVE · Cap: $438.30B
RLX
RLX Technology Inc
$1.60
-1.84%
CONSUMER DEFENSIVE · Cap: $2.08B
Smart Verdict
WallStSmart Research — data-driven comparison
Costco Wholesale Corp generates 6635% more annual revenue ($303.15B vs $4.50B). RLX leads profitability with a 21.9% profit margin vs 3.0%. RLX trades at a lower P/E of 15.4x. RLX earns a higher WallStSmart Score of 58/100 (C).
COST
Buy55
out of 100
Grade: C-
RLX
Buy58
out of 100
Grade: C
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
Reasonable price relative to book value
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Keeps 22 of every $100 in revenue as profit
Attractively priced relative to earnings
15.5% revenue growth
Areas to Watch
Trading at 12.2x book value
3.0% margin — thin
Operating margin of 3.8%
Expensive relative to growth rate
0.6% earnings growth
ROE of 6.2% — below average capital efficiency
Negative free cash flow — burning cash
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 : RLX
The strongest argument for RLX centers on Price/Book, Debt/Equity, Altman Z-Score. Profitability is solid with margins at 21.9% and operating margin at 14.2%. Revenue growth of 15.5% demonstrates continued momentum.
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 : RLX
The primary concerns for RLX are EPS Growth, Return on Equity, Free Cash Flow.
Key Dynamics to Monitor
COST profiles as a value stock while RLX is a growth play — different risk/reward profiles.
RLX carries more volatility with a beta of 1.13 — expect wider price swings.
RLX is growing revenue faster at 15.5% — sustainability is the question.
COST generates stronger free cash flow (2.5B), providing more financial flexibility.
Bottom Line
RLX scores higher overall (58/100 vs 55/100), backed by strong 21.9% margins and 15.5% 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 →RLX Technology Inc
CONSUMER DEFENSIVE · TOBACCO · China
RLX Technology Inc., researches, develops, manufactures, distributes and sells e-vapor products in the People's Republic of China. The company is headquartered in Beijing, China.
Visit Website →Compare with Other DISCOUNT STORES Stocks
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