WallStSmart

Bunge Limited (BG)vsCostco Wholesale Corp (COST)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Costco Wholesale Corp generates 307% more annual revenue ($286.27B vs $70.33B). COST leads profitability with a 3.0% profit margin vs 1.2%. BG appears more attractively valued with a PEG of 1.71. COST earns a higher WallStSmart Score of 61/100 (C+).

BG

Buy

59

out of 100

Grade: C

Growth: 5.3Profit: 4.0Value: 5.3Quality: 4.5
Piotroski: 1/9

COST

Buy

61

out of 100

Grade: C+

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

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BGUndervalued (+21.4%)

Margin of Safety

+21.4%

Fair Value

$155.26

Current Price

$126.31

$28.95 discount

UndervaluedFair: $155.26Overvalued
COSTSignificantly Overvalued (-88.3%)

Margin of Safety

-88.3%

Fair Value

$530.40

Current Price

$998.67

$468.27 premium

UndervaluedFair: $530.40Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BG2 strengths · Avg: 9.0/10
Revenue GrowthGrowth
75.5%10/10

Revenue surging 75.5% year-over-year

Price/BookValuation
1.5x8/10

Reasonable price relative to book value

COST6 strengths · Avg: 9.0/10
Market CapQuality
$448.60B10/10

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

Areas to Watch

BG4 concerns · Avg: 3.5/10
PEG RatioValuation
1.714/10

Expensive relative to growth rate

P/E RatioValuation
33.2x4/10

Premium valuation, high expectations priced in

Return on EquityProfitability
6.0%3/10

ROE of 6.0% — below average capital efficiency

Profit MarginProfitability
1.2%3/10

1.2% margin — thin

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
5.602/10

Expensive relative to growth rate

P/E RatioValuation
52.6x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : BG

The strongest argument for BG centers on Revenue Growth, Price/Book. Revenue growth of 75.5% demonstrates continued momentum.

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.

Bear Case : BG

The primary concerns for BG are PEG Ratio, P/E Ratio, Return on Equity. Thin 1.2% margins leave little buffer for downturns.

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.

Key Dynamics to Monitor

BG profiles as a hypergrowth stock while COST is a growth play — different risk/reward profiles.

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

BG is growing revenue faster at 75.5% — 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 59/100) and 21.5% revenue growth. BG offers better value entry with a 21.4% margin of safety. 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.

Bunge Limited

CONSUMER DEFENSIVE · FARM PRODUCTS · USA

Bunge Limited is a global food and agribusiness company. The company is headquartered in St. Louis, Missouri.

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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