Bristol-Myers Squibb Company (BMY)vsCostco Wholesale Corp (COST)
BMY
Bristol-Myers Squibb Company
$56.16
-0.16%
HEALTHCARE · Cap: $114.68B
COST
Costco Wholesale Corp
$1,008.79
-0.32%
CONSUMER DEFENSIVE · Cap: $449.00B
Smart Verdict
WallStSmart Research — data-driven comparison
Costco Wholesale Corp generates 490% more annual revenue ($286.27B vs $48.48B). BMY leads profitability with a 15.0% profit margin vs 3.0%. COST appears more attractively valued with a PEG of 5.14. COST earns a higher WallStSmart Score of 61/100 (C+).
BMY
Buy60
out of 100
Grade: C+
COST
Buy61
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+32.0%
Fair Value
$88.08
Current Price
$56.16
$31.92 discount
Margin of Safety
-89.1%
Fair Value
$535.26
Current Price
$1008.79
$473.53 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 39 in profit
Strong operational efficiency at 33.0%
Large-cap with strong market position
Attractively priced relative to earnings
Mega-cap, among the largest globally
Safe zone — low bankruptcy risk
Every $100 of equity generates 30 in profit
Conservative balance sheet, low leverage
Revenue surging 21.5% year-over-year
Earnings expanding 45.5% YoY
Areas to Watch
2.6% revenue growth
Expensive relative to growth rate
Distress zone — elevated risk
Elevated debt levels
3.0% margin — thin
Operating margin of 3.7%
Expensive relative to growth rate
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : BMY
The strongest argument for BMY centers on Return on Equity, Operating Margin, Market Cap.
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 : BMY
The primary concerns for BMY are Revenue Growth, PEG Ratio, Altman Z-Score. Debt-to-equity of 2.55 is elevated, increasing financial risk.
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
BMY profiles as a value stock while COST is a growth play — different risk/reward profiles.
COST carries more volatility with a beta of 0.91 — 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 60/100) and 21.5% revenue growth. BMY offers better value entry with a 32.0% 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.
Bristol-Myers Squibb Company
HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA
Bristol Myers Squibb (BMS) is an American multinational pharmaceutical company, headquartered in New York City. Bristol Myers Squibb manufactures prescription pharmaceuticals and biologics in several therapeutic areas, including cancer, AIDS, cardiovascular disease, diabetes, hepatitis, rheumatoid arthritis and psychiatric disorders.
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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