Costco Wholesale Corp (COST)vsBBB Foods Inc. (TBBB)
COST
Costco Wholesale Corp
$974.86
+0.11%
CONSUMER DEFENSIVE · Cap: $432.25B
TBBB
BBB Foods Inc.
$34.58
-0.86%
CONSUMER DEFENSIVE · Cap: $4.00B
Smart Verdict
WallStSmart Research — data-driven comparison
Costco Wholesale Corp generates 266% more annual revenue ($286.27B vs $78.15B). COST leads profitability with a 3.0% profit margin vs -3.6%. COST earns a higher WallStSmart Score of 53/100 (C-).
COST
Buy53
out of 100
Grade: C-
TBBB
Hold48
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
Intrinsic value data unavailable for TBBB.
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
Revenue surging 34.4% year-over-year
Areas to Watch
Trading at 13.5x book value
3.0% margin — thin
Operating margin of 3.7%
Expensive relative to growth rate
Trading at 17.1x book value
2.5% earnings growth
ROE of -69.6% — below average capital efficiency
Currently unprofitable
Comparative Analysis Report
WallStSmart ResearchBull Case : COST
The strongest argument for COST centers on Market Cap, Altman Z-Score, Return on Equity.
Bull Case : TBBB
The strongest argument for TBBB centers on Revenue Growth. Revenue growth of 34.4% demonstrates continued momentum.
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 : TBBB
The primary concerns for TBBB are Price/Book, EPS Growth, Return on Equity.
Key Dynamics to Monitor
COST profiles as a value stock while TBBB is a hypergrowth play — different risk/reward profiles.
COST carries more volatility with a beta of 0.99 — expect wider price swings.
TBBB is growing revenue faster at 34.4% — sustainability is the question.
COST generates stronger free cash flow (1.7B), providing more financial flexibility.
Bottom Line
COST scores higher overall (53/100 vs 48/100). 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 →BBB Foods Inc.
CONSUMER DEFENSIVE · DISCOUNT STORES · USA
BBB Foods Inc., operates grocery retail stores in Mexico. The company is headquartered in Mexico City, Mexico.
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