Cal-Maine Foods Inc (CALM)vsCostco Wholesale Corp (COST)
CALM
Cal-Maine Foods Inc
$75.07
-2.86%
CONSUMER DEFENSIVE · Cap: $3.56B
COST
Costco Wholesale Corp
$998.67
+1.59%
CONSUMER DEFENSIVE · Cap: $448.60B
Smart Verdict
WallStSmart Research — data-driven comparison
Costco Wholesale Corp generates 8167% more annual revenue ($286.27B vs $3.46B). CALM leads profitability with a 20.1% profit margin vs 3.0%. CALM appears more attractively valued with a PEG of 2.20. COST earns a higher WallStSmart Score of 61/100 (C+).
CALM
Buy59
out of 100
Grade: C
COST
Buy61
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+25.9%
Fair Value
$112.33
Current Price
$75.07
$37.26 discount
Margin of Safety
-88.3%
Fair Value
$530.40
Current Price
$998.67
$468.27 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Safe zone — low bankruptcy risk
Every $100 of equity generates 27 in profit
Keeps 20 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
Revenue surging 21.5% year-over-year
Earnings expanding 45.5% YoY
Areas to Watch
Expensive relative to growth rate
Revenue declined 53.0%
Earnings declined 89.8%
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 : CALM
The strongest argument for CALM centers on P/E Ratio, Price/Book, Altman Z-Score. Profitability is solid with margins at 20.1% and operating margin at 5.4%.
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 : CALM
The primary concerns for CALM are PEG Ratio, Revenue Growth, EPS Growth.
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
CALM profiles as a declining 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 59/100) and 21.5% revenue growth. CALM offers better value entry with a 25.9% 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.
Cal-Maine Foods Inc
CONSUMER DEFENSIVE · FARM PRODUCTS · USA
Cal-Maine Foods, Inc. produces, grades, packs, markets and distributes shell eggs. The company is headquartered in Jackson, Mississippi.
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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