ConocoPhillips (COP)vsCostco Wholesale Corp (COST)
COP
ConocoPhillips
$113.87
-0.88%
ENERGY · Cap: $139.96B
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 382% more annual revenue ($286.27B vs $59.38B). COP leads profitability with a 12.3% profit margin vs 3.0%. COP appears more attractively valued with a PEG of 1.14. COST earns a higher WallStSmart Score of 61/100 (C+).
COP
Buy56
out of 100
Grade: C
COST
Buy61
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-50.4%
Fair Value
$73.94
Current Price
$113.87
$39.93 premium
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
Large-cap with strong market position
Reasonable price relative to book value
Strong operational efficiency at 22.1%
Generating 1.3B in free cash flow
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
Revenue declined 5.3%
Earnings declined 20.2%
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 : COP
The strongest argument for COP centers on Market Cap, Price/Book, Operating Margin. PEG of 1.14 suggests the stock is reasonably priced for its 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 : COP
The primary concerns for COP are 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
COP profiles as a declining 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 56/100) and 21.5% revenue growth. 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.
ConocoPhillips
ENERGY · OIL & GAS E&P · USA
ConocoPhillips is an American multinational corporation engaged in hydrocarbon exploration. It is based in the Energy Corridor district of Houston, Texas.
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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