Costco Wholesale Corp (COST)vsChevron Corp (CVX)
COST
Costco Wholesale Corp
$974.86
+0.49%
CONSUMER DEFENSIVE · Cap: $432.25B
CVX
Chevron Corp
$205.15
+1.29%
ENERGY · Cap: $410.17B
Smart Verdict
WallStSmart Research — data-driven comparison
Costco Wholesale Corp generates 55% more annual revenue ($286.27B vs $184.65B). CVX leads profitability with a 6.7% profit margin vs 3.0%. CVX appears more attractively valued with a PEG of 3.82. COST earns a higher WallStSmart Score of 53/100 (C-).
COST
Buy53
out of 100
Grade: C-
CVX
Hold40
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-74.7%
Fair Value
$558.15
Current Price
$974.86
$416.71 premium
Margin of Safety
-360.9%
Fair Value
$45.08
Current Price
$205.15
$160.07 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Safe zone — low bankruptcy risk
Every $100 of equity generates 30 in profit
Conservative balance sheet, low leverage
Generating 1.7B in free cash flow
Mega-cap, among the largest globally
Reasonable price relative to book value
Generating 5.4B in free cash flow
Areas to Watch
Trading at 13.5x book value
3.0% margin — thin
Operating margin of 3.7%
Expensive relative to growth rate
Premium valuation, high expectations priced in
ROE of 7.2% — below average capital efficiency
6.7% margin — thin
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : COST
The strongest argument for COST centers on Market Cap, Altman Z-Score, Return on Equity.
Bull Case : CVX
The strongest argument for CVX centers on Market Cap, Price/Book, Free Cash Flow.
Bear Case : COST
The primary concerns for COST are Price/Book, Profit Margin, Operating Margin. A P/E of 50.7x leaves little room for execution misses. Thin 3.0% margins leave little buffer for downturns.
Bear Case : CVX
The primary concerns for CVX are P/E Ratio, Return on Equity, Profit Margin.
Key Dynamics to Monitor
COST carries more volatility with a beta of 0.99 — expect wider price swings.
COST is growing revenue faster at 9.2% — sustainability is the question.
CVX generates stronger free cash flow (5.4B), providing more financial flexibility.
Monitor DISCOUNT STORES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
COST scores higher overall (53/100 vs 40/100). Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
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 →Chevron Corp
ENERGY · OIL & GAS INTEGRATED · USA
Chevron Corporation is an American multinational energy corporation. One of the successor companies of Standard Oil, it is headquartered in San Ramon, California, and active in more than 180 countries. Chevron is engaged in every aspect of the oil and natural gas industries, including hydrocarbon exploration and production; refining, marketing and transport; chemicals manufacturing and sales; and power generation.
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