Amgen Inc (AMGN)vsCostco Wholesale Corp (COST)
AMGN
Amgen Inc
$353.93
+1.58%
HEALTHCARE · Cap: $187.83B
COST
Costco Wholesale Corp
$974.86
+0.11%
CONSUMER DEFENSIVE · Cap: $432.25B
Smart Verdict
WallStSmart Research — data-driven comparison
Costco Wholesale Corp generates 679% more annual revenue ($286.27B vs $36.75B). AMGN leads profitability with a 21.0% profit margin vs 3.0%. AMGN appears more attractively valued with a PEG of 2.33. AMGN earns a higher WallStSmart Score of 70/100 (B-).
AMGN
Strong Buy70
out of 100
Grade: B-
COST
Buy53
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+46.8%
Fair Value
$665.50
Current Price
$353.93
$311.57 discount
Margin of Safety
-74.7%
Fair Value
$558.15
Current Price
$974.86
$416.71 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 106 in profit
Strong operational efficiency at 30.5%
Earnings expanding 112.1% YoY
Large-cap with strong market position
Keeps 21 of every $100 in revenue as profit
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
Areas to Watch
Expensive relative to growth rate
Trading at 22.0x book value
Trading at 13.5x book value
3.0% margin — thin
Operating margin of 3.7%
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : AMGN
The strongest argument for AMGN centers on Return on Equity, Operating Margin, EPS Growth. Profitability is solid with margins at 21.0% and operating margin at 30.5%.
Bull Case : COST
The strongest argument for COST centers on Market Cap, Altman Z-Score, Return on Equity.
Bear Case : AMGN
The primary concerns for AMGN are PEG Ratio, Price/Book.
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.
Key Dynamics to Monitor
AMGN profiles as a mature stock while COST is a value play — different risk/reward profiles.
COST carries more volatility with a beta of 0.99 — 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
AMGN scores higher overall (70/100 vs 53/100), backed by strong 21.0% margins. 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.
Amgen Inc
HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA
Amgen Inc. (formerly Applied Molecular Genetics Inc.) is an American multinational biopharmaceutical company headquartered in Thousand Oaks, California. Focused on molecular biology and biochemistry, its goal is to provide a healthcare business based on recombinant DNA technology.
Visit Website →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 →Compare with Other DRUG MANUFACTURERS - GENERAL Stocks
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