Costco Wholesale Corp (COST)vsTalen Energy Corporation (TLN)
COST
Costco Wholesale Corp
$974.86
+0.11%
CONSUMER DEFENSIVE · Cap: $432.25B
TLN
Talen Energy Corporation
$328.29
+3.96%
UTILITIES · Cap: $14.51B
Smart Verdict
WallStSmart Research — data-driven comparison
Costco Wholesale Corp generates 10801% more annual revenue ($286.27B vs $2.63B). COST leads profitability with a 3.0% profit margin vs -8.3%. COST earns a higher WallStSmart Score of 53/100 (C-).
COST
Buy53
out of 100
Grade: C-
TLN
Hold42
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 TLN.
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 58.0% year-over-year
Earnings expanding 34.5% YoY
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 13.7x book value
ROE of -17.7% — below average capital efficiency
Currently unprofitable
Operating margin of -36.1%
Comparative Analysis Report
WallStSmart ResearchBull Case : COST
The strongest argument for COST centers on Market Cap, Altman Z-Score, Return on Equity.
Bull Case : TLN
The strongest argument for TLN centers on Revenue Growth, EPS Growth. Revenue growth of 58.0% 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 : TLN
The primary concerns for TLN are Price/Book, Return on Equity, Profit Margin.
Key Dynamics to Monitor
COST profiles as a value stock while TLN is a hypergrowth play — different risk/reward profiles.
TLN carries more volatility with a beta of 1.61 — expect wider price swings.
TLN is growing revenue faster at 58.0% — 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 42/100). 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.
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