ConAgra Foods Inc (CAG)vsCostco Wholesale Corp (COST)
CAG
ConAgra Foods Inc
$14.23
-0.28%
CONSUMER DEFENSIVE · Cap: $6.81B
COST
Costco Wholesale Corp
$1,014.53
+1.59%
CONSUMER DEFENSIVE · Cap: $450.10B
Smart Verdict
WallStSmart Research — data-driven comparison
Costco Wholesale Corp generates 2460% more annual revenue ($286.27B vs $11.18B). COST leads profitability with a 3.0% profit margin vs -0.4%. COST appears more attractively valued with a PEG of 5.53. COST earns a higher WallStSmart Score of 61/100 (C+).
CAG
Buy54
out of 100
Grade: C-
COST
Buy61
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+27.5%
Fair Value
$27.60
Current Price
$14.23
$13.37 discount
Intrinsic value data unavailable for COST.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Earnings expanding 39.0% YoY
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
Distress zone — elevated risk
Expensive relative to growth rate
ROE of -0.5% — below average capital efficiency
Revenue declined 1.9%
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 : CAG
The strongest argument for CAG centers on Price/Book, EPS Growth.
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 : CAG
The primary concerns for CAG are Altman Z-Score, PEG Ratio, Return on Equity.
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
CAG profiles as a turnaround 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.
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 54/100) and 21.5% revenue growth. CAG offers better value entry with a 27.5% 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.
ConAgra Foods Inc
CONSUMER DEFENSIVE · PACKAGED FOODS · USA
Conagra Brands, Inc. (formerly ConAgra Foods) is an American consumer packaged goods holding company headquartered in Chicago, Illinois. Conagra makes and sells products under various brand names that are available in supermarkets, restaurants, and food service establishments.
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 PACKAGED FOODS Stocks
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