Costco Wholesale Corp (COST)vsTootsie Roll Industries Inc (TR)
COST
Costco Wholesale Corp
$973.82
+0.11%
CONSUMER DEFENSIVE · Cap: $431.59B
TR
Tootsie Roll Industries Inc
$41.61
+0.80%
CONSUMER DEFENSIVE · Cap: $3.05B
Smart Verdict
WallStSmart Research — data-driven comparison
Costco Wholesale Corp generates 38979% more annual revenue ($286.27B vs $732.52M). TR leads profitability with a 13.7% profit margin vs 3.0%. TR appears more attractively valued with a PEG of 3.43. COST earns a higher WallStSmart Score of 53/100 (C-).
COST
Buy53
out of 100
Grade: C-
TR
Hold49
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-75.1%
Fair Value
$556.12
Current Price
$973.82
$417.70 premium
Margin of Safety
+35.7%
Fair Value
$62.24
Current Price
$41.61
$20.63 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 30 in profit
Conservative balance sheet, low leverage
Generating 1.7B in free cash flow
Revenue surging 150.0% year-over-year
Earnings expanding 28.4% YoY
Areas to Watch
Trading at 13.5x book value
3.0% margin — thin
Operating margin of 3.7%
Expensive relative to growth rate
Premium valuation, high expectations priced in
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.
Bull Case : TR
The strongest argument for TR centers on Revenue Growth, EPS Growth. Revenue growth of 150.0% demonstrates continued momentum.
Bear Case : COST
The primary concerns for COST are Price/Book, Profit Margin, Operating Margin. A P/E of 50.8x leaves little room for execution misses. Thin 3.0% margins leave little buffer for downturns.
Bear Case : TR
The primary concerns for TR are P/E Ratio, PEG Ratio.
Key Dynamics to Monitor
COST profiles as a value stock while TR is a growth play — different risk/reward profiles.
COST carries more volatility with a beta of 0.99 — expect wider price swings.
TR is growing revenue faster at 150.0% — 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 49/100). TR offers better value entry with a 35.7% margin of safety. 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 →Tootsie Roll Industries Inc
CONSUMER DEFENSIVE · CONFECTIONERS · USA
Tootsie Roll Industries, Inc., manufactures and sells confectionery products primarily in the United States, Canada, Mexico, and internationally. The company is headquartered in Chicago, Illinois.
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