Costco Wholesale Corp (COST)vsWest Pharmaceutical Services Inc (WST)
COST
Costco Wholesale Corp
$974.86
+0.49%
CONSUMER DEFENSIVE · Cap: $432.25B
WST
West Pharmaceutical Services Inc
$247.02
+0.71%
HEALTHCARE · Cap: $17.68B
Smart Verdict
WallStSmart Research — data-driven comparison
Costco Wholesale Corp generates 9212% more annual revenue ($286.27B vs $3.07B). WST leads profitability with a 16.1% profit margin vs 3.0%. WST appears more attractively valued with a PEG of 2.89. WST earns a higher WallStSmart Score of 55/100 (C-).
COST
Buy53
out of 100
Grade: C-
WST
Buy55
out of 100
Grade: C-
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
-256.8%
Fair Value
$68.99
Current Price
$247.02
$178.03 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
Safe zone — low bankruptcy risk
Strong operational efficiency at 21.6%
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
2.1% earnings growth
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 : WST
The strongest argument for WST centers on Altman Z-Score, Operating Margin. Profitability is solid with margins at 16.1% and operating margin at 21.6%.
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 : WST
The primary concerns for WST are P/E Ratio, EPS Growth, PEG Ratio.
Key Dynamics to Monitor
COST profiles as a value stock while WST is a mature play — different risk/reward profiles.
WST carries more volatility with a beta of 1.18 — expect wider price swings.
COST is growing revenue faster at 9.2% — sustainability is the question.
COST generates stronger free cash flow (1.7B), providing more financial flexibility.
Bottom Line
WST scores higher overall (55/100 vs 53/100), backed by strong 16.1% margins. Both earn "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 →West Pharmaceutical Services Inc
HEALTHCARE · MEDICAL INSTRUMENTS & SUPPLIES · USA
West Pharmaceutical Services, Inc. is a designer and manufacturer of injectable pharmaceutical packaging and delivery systems. The company is headquartered in Exton, Pennsylvania.
Compare with Other DISCOUNT STORES Stocks
Want to dig deeper into these stocks?