WallStSmart

Costco Wholesale Corp (COST)vsVillage Super Market Inc (VLGEA)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Costco Wholesale Corp generates 11893% more annual revenue ($286.27B vs $2.39B). COST leads profitability with a 3.0% profit margin vs 2.4%. VLGEA trades at a lower P/E of 11.3x. COST earns a higher WallStSmart Score of 61/100 (C+).

COST

Buy

61

out of 100

Grade: C+

Growth: 8.0Profit: 6.5Value: 2.0Quality: 7.5
Piotroski: 4/9Altman Z: 4.84

VLGEA

Hold

48

out of 100

Grade: D+

Growth: 5.3Profit: 5.0Value: 8.3Quality: 6.0
Piotroski: 3/9Altman Z: 3.75
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

COSTSignificantly Overvalued (-89.9%)

Margin of Safety

-89.9%

Fair Value

$535.26

Current Price

$995.75

$460.49 premium

UndervaluedFair: $535.26Overvalued
VLGEAUndervalued (+64.0%)

Margin of Safety

+64.0%

Fair Value

$104.23

Current Price

$43.37

$60.86 discount

UndervaluedFair: $104.23Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

COST6 strengths · Avg: 9.0/10
Market CapQuality
$448.84B10/10

Mega-cap, among the largest globally

Altman Z-ScoreHealth
4.8410/10

Safe zone — low bankruptcy risk

Return on EquityProfitability
29.6%9/10

Every $100 of equity generates 30 in profit

Debt/EquityHealth
0.279/10

Conservative balance sheet, low leverage

Revenue GrowthGrowth
21.5%8/10

Revenue surging 21.5% year-over-year

EPS GrowthGrowth
45.5%8/10

Earnings expanding 45.5% YoY

VLGEA3 strengths · Avg: 10.0/10
P/E RatioValuation
11.3x10/10

Attractively priced relative to earnings

Price/BookValuation
1.2x10/10

Reasonable price relative to book value

Altman Z-ScoreHealth
3.7510/10

Safe zone — low bankruptcy risk

Areas to Watch

COST4 concerns · Avg: 2.5/10
Profit MarginProfitability
3.0%3/10

3.0% margin — thin

Operating MarginProfitability
3.7%3/10

Operating margin of 3.7%

PEG RatioValuation
5.142/10

Expensive relative to growth rate

P/E RatioValuation
52.6x2/10

Premium valuation, high expectations priced in

VLGEA4 concerns · Avg: 3.0/10
Market CapQuality
$639.79M3/10

Smaller company, higher risk/reward

Profit MarginProfitability
2.4%3/10

2.4% margin — thin

Operating MarginProfitability
3.7%3/10

Operating margin of 3.7%

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull 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 : VLGEA

The strongest argument for VLGEA centers on P/E Ratio, Price/Book, Altman Z-Score.

Bear Case : COST

The primary concerns for COST are Profit Margin, Operating Margin, PEG Ratio. A P/E of 52.6x leaves little room for execution misses. Thin 3.0% margins leave little buffer for downturns.

Bear Case : VLGEA

The primary concerns for VLGEA are Market Cap, Profit Margin, Operating Margin. Thin 2.4% margins leave little buffer for downturns.

Key Dynamics to Monitor

COST profiles as a growth stock while VLGEA is a value play — different risk/reward profiles.

COST carries more volatility with a beta of 0.98 — expect wider price swings.

COST is growing revenue faster at 21.5% — sustainability is the question.

COST generates stronger free cash flow (1.7B), providing more financial flexibility.

Bottom Line

COST scores higher overall (61/100 vs 48/100) and 21.5% revenue growth. VLGEA offers better value entry with a 64.0% 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.

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Village Super Market Inc

CONSUMER DEFENSIVE · GROCERY STORES · USA

Village Super Market, Inc. operates a chain of supermarkets in the United States. The company is headquartered in Springfield, New Jersey.

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