Costco Wholesale Corp (COST)vsTradeweb Markets Inc (TW)
COST
Costco Wholesale Corp
$974.86
+0.11%
CONSUMER DEFENSIVE · Cap: $432.25B
TW
Tradeweb Markets Inc
$119.95
-2.74%
FINANCIAL SERVICES · Cap: $26.94B
Smart Verdict
WallStSmart Research — data-driven comparison
Costco Wholesale Corp generates 13861% more annual revenue ($286.27B vs $2.05B). TW leads profitability with a 39.6% profit margin vs 3.0%. TW appears more attractively valued with a PEG of 2.97. TW earns a higher WallStSmart Score of 67/100 (B-).
COST
Buy53
out of 100
Grade: C-
TW
Strong Buy67
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-74.7%
Fair Value
$558.15
Current Price
$974.86
$416.71 premium
Margin of Safety
+34.8%
Fair Value
$176.44
Current Price
$119.95
$56.49 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
Keeps 40 of every $100 in revenue as profit
Strong operational efficiency at 42.4%
Earnings expanding 128.8% YoY
Safe zone — low bankruptcy risk
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 : TW
The strongest argument for TW centers on Profit Margin, Operating Margin, EPS Growth. Profitability is solid with margins at 39.6% and operating margin at 42.4%. Revenue growth of 12.5% 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 : TW
The primary concerns for TW are P/E Ratio, PEG Ratio.
Key Dynamics to Monitor
COST profiles as a value stock while TW is a mature play — different risk/reward profiles.
COST carries more volatility with a beta of 0.99 — expect wider price swings.
TW is growing revenue faster at 12.5% — sustainability is the question.
COST generates stronger free cash flow (1.7B), providing more financial flexibility.
Bottom Line
TW scores higher overall (67/100 vs 53/100), backed by strong 39.6% margins and 12.5% revenue growth. Both earn "Strong 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 →Tradeweb Markets Inc
FINANCIAL SERVICES · CAPITAL MARKETS · USA
Tradeweb Markets Inc. creates and operates electronic marketplaces in the Americas, Europe, the Middle East, Africa, Asia Pacific and internationally.
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