Costco Wholesale Corp (COST)vsTarget Corporation (TGT)
COST
Costco Wholesale Corp
$971.87
-1.46%
CONSUMER DEFENSIVE · Cap: $434.37B
TGT
Target Corporation
$122.57
-1.03%
CONSUMER DEFENSIVE · Cap: $60.48B
Smart Verdict
WallStSmart Research — data-driven comparison
Costco Wholesale Corp generates 176% more annual revenue ($293.59B vs $106.38B). TGT leads profitability with a 3.2% profit margin vs 3.0%. TGT appears more attractively valued with a PEG of 2.51. COST earns a higher WallStSmart Score of 61/100 (C+).
COST
Buy61
out of 100
Grade: C+
TGT
Buy52
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for COST.
Margin of Safety
+4.0%
Fair Value
$119.45
Current Price
$122.57
$3.12 discount
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 27 in profit
Revenue surging 21.5% year-over-year
Earnings expanding 45.5% YoY
Generating 2.0B in free cash flow
Large-cap with strong market position
Every $100 of equity generates 21 in profit
Conservative balance sheet, low leverage
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
3.2% margin — thin
Operating margin of 4.5%
Weak financial health signals
Expensive relative to growth rate
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 : TGT
The strongest argument for TGT centers on Market Cap, Return on Equity, Debt/Equity.
Bear Case : COST
The primary concerns for COST are Profit Margin, Operating Margin, PEG Ratio. A P/E of 49.3x leaves little room for execution misses. Thin 3.0% margins leave little buffer for downturns.
Bear Case : TGT
The primary concerns for TGT are Profit Margin, Operating Margin, Piotroski F-Score. Thin 3.2% margins leave little buffer for downturns.
Key Dynamics to Monitor
COST profiles as a growth stock while TGT is a value play — different risk/reward profiles.
TGT carries more volatility with a beta of 0.99 — 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 52/100) and 21.5% 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 →Target Corporation
CONSUMER DEFENSIVE · DISCOUNT STORES · USA
Target Corporation is an American retail corporation. Their retail formats include the discount store Target, the hypermarket SuperTarget, and small-format stores previously named CityTarget and TargetExpress before being consolidated under the Target branding.
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