Central Garden & Pet Company (CENT)vsCostco Wholesale Corp (COST)
CENT
Central Garden & Pet Company
$40.16
+1.47%
CONSUMER DEFENSIVE · Cap: $2.41B
COST
Costco Wholesale Corp
$971.87
-0.30%
CONSUMER DEFENSIVE · Cap: $423.23B
Smart Verdict
WallStSmart Research — data-driven comparison
Costco Wholesale Corp generates 9183% more annual revenue ($293.59B vs $3.16B). CENT leads profitability with a 5.4% profit margin vs 3.0%. CENT appears more attractively valued with a PEG of 2.01. CENT earns a higher WallStSmart Score of 66/100 (B-).
CENT
Strong Buy66
out of 100
Grade: B-
COST
Buy61
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+40.6%
Fair Value
$62.85
Current Price
$40.16
$22.69 discount
Intrinsic value data unavailable for COST.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Earnings expanding 30.6% YoY
Mega-cap, among the largest globally
Safe zone — low bankruptcy risk
Every $100 of equity generates 27 in profit
Revenue surging 21.5% year-over-year
Earnings expanding 45.5% YoY
Generating 2.0B in free cash flow
Areas to Watch
Expensive relative to growth rate
5.4% margin — thin
Negative free cash flow — burning cash
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 : CENT
The strongest argument for CENT centers on P/E Ratio, 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 : CENT
The primary concerns for CENT are PEG Ratio, Profit Margin, Free Cash Flow.
Bear Case : COST
The primary concerns for COST are Profit Margin, Operating Margin, PEG Ratio. A P/E of 48.1x leaves little room for execution misses. Thin 3.0% margins leave little buffer for downturns.
Key Dynamics to Monitor
CENT 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 (2.0B), providing more financial flexibility.
Bottom Line
CENT scores higher overall (66/100 vs 61/100). 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.
Central Garden & Pet Company
CONSUMER DEFENSIVE · PACKAGED FOODS · USA
Central Garden & Pet Company produces and distributes various products for the lawn and garden, and pet supply markets in the United States. The company is headquartered in Walnut Creek, California.
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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