WallStSmart

Amphenol Corporation (APH)vsCostco Wholesale Corp (COST)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Costco Wholesale Corp generates 1140% more annual revenue ($286.27B vs $23.09B). APH leads profitability with a 18.5% profit margin vs 3.0%. APH appears more attractively valued with a PEG of 1.41. APH earns a higher WallStSmart Score of 76/100 (B+).

APH

Strong Buy

76

out of 100

Grade: B+

Growth: 10.0Profit: 9.0Value: 8.7Quality: 6.8
Piotroski: 4/9Altman Z: 2.36

COST

Buy

53

out of 100

Grade: C-

Growth: 6.0Profit: 6.5Value: 2.0Quality: 7.5
Piotroski: 4/9Altman Z: 4.84
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

APHUndervalued (+6.8%)

Margin of Safety

+6.8%

Fair Value

$156.78

Current Price

$128.73

$28.05 discount

UndervaluedFair: $156.78Overvalued
COSTSignificantly Overvalued (-74.7%)

Margin of Safety

-74.7%

Fair Value

$558.15

Current Price

$974.86

$416.71 premium

UndervaluedFair: $558.15Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

APH6 strengths · Avg: 9.2/10
Return on EquityProfitability
36.8%10/10

Every $100 of equity generates 37 in profit

Revenue GrowthGrowth
49.1%10/10

Revenue surging 49.1% year-over-year

EPS GrowthGrowth
57.6%10/10

Earnings expanding 57.6% YoY

Market CapQuality
$157.29B9/10

Large-cap with strong market position

Operating MarginProfitability
27.5%8/10

Strong operational efficiency at 27.5%

Free Cash FlowQuality
$1.47B8/10

Generating 1.5B in free cash flow

COST5 strengths · Avg: 9.2/10
Market CapQuality
$432.25B10/10

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

Free Cash FlowQuality
$1.71B8/10

Generating 1.7B in free cash flow

Areas to Watch

APH2 concerns · Avg: 4.0/10
P/E RatioValuation
38.2x4/10

Premium valuation, high expectations priced in

Price/BookValuation
11.8x4/10

Trading at 11.8x book value

COST4 concerns · Avg: 3.0/10
Price/BookValuation
13.5x4/10

Trading at 13.5x book value

Profit MarginProfitability
3.0%3/10

3.0% margin — thin

Operating MarginProfitability
3.7%3/10

Operating margin of 3.7%

PEG RatioValuation
5.412/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : APH

The strongest argument for APH centers on Return on Equity, Revenue Growth, EPS Growth. Profitability is solid with margins at 18.5% and operating margin at 27.5%. Revenue growth of 49.1% demonstrates continued momentum.

Bull Case : COST

The strongest argument for COST centers on Market Cap, Altman Z-Score, Return on Equity.

Bear Case : APH

The primary concerns for APH are P/E 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

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

APH carries more volatility with a beta of 1.21 — expect wider price swings.

APH is growing revenue faster at 49.1% — sustainability is the question.

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

Bottom Line

APH scores higher overall (76/100 vs 53/100), backed by strong 18.5% margins and 49.1% 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.

Amphenol Corporation

TECHNOLOGY · ELECTRONIC COMPONENTS · USA

Amphenol Corporation is a major producer of electronic and fiber optic connectors, cable and interconnect systems such as coaxial cables. Amphenol is a portmanteau from the corporation's original name, American Phenolic Corp.

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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