Costco Wholesale Corp (COST)vsTarget Corporation (TGT)
COST
Costco Wholesale Corp
$972.33
-0.25%
CONSUMER DEFENSIVE · Cap: $444.46B
TGT
Target Corporation
$113.26
-1.06%
CONSUMER DEFENSIVE · Cap: $52.88B
Smart Verdict
WallStSmart Research — data-driven comparison
Costco Wholesale Corp generates 173% more annual revenue ($286.27B vs $104.78B). TGT leads profitability with a 3.5% profit margin vs 3.0%. TGT appears more attractively valued with a PEG of 3.33. COST earns a higher WallStSmart Score of 53/100 (C-).
COST
Buy53
out of 100
Grade: C-
TGT
Hold46
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-74.5%
Fair Value
$558.44
Current Price
$972.33
$413.89 premium
Margin of Safety
-107.8%
Fair Value
$55.15
Current Price
$113.26
$58.11 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
Every $100 of equity generates 24 in profit
Attractively priced relative to earnings
Generating 2.3B in free cash flow
Areas to Watch
Trading at 13.4x book value
3.0% margin — thin
Operating margin of 3.7%
Expensive relative to growth rate
3.5% margin — thin
Operating margin of 4.9%
Expensive relative to growth rate
Revenue declined 150.0%
Comparative Analysis Report
WallStSmart ResearchBull Case : COST
The strongest argument for COST centers on Market Cap, Altman Z-Score, Return on Equity.
Bull Case : TGT
The strongest argument for TGT centers on Market Cap, Return on Equity, P/E Ratio.
Bear Case : COST
The primary concerns for COST are Price/Book, Profit Margin, Operating Margin. A P/E of 52.1x 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, PEG Ratio. Thin 3.5% margins leave little buffer for downturns.
Key Dynamics to Monitor
TGT carries more volatility with a beta of 1.10 — expect wider price swings.
COST is growing revenue faster at 9.2% — sustainability is the question.
TGT generates stronger free cash flow (2.3B), 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 →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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