Costco Wholesale Corp (COST)vsDarling Ingredients Inc (DAR)
COST
Costco Wholesale Corp
$954.08
+0.23%
CONSUMER DEFENSIVE · Cap: $411.24B
DAR
Darling Ingredients Inc
$59.76
-1.45%
CONSUMER DEFENSIVE · Cap: $9.32B
Smart Verdict
WallStSmart Research — data-driven comparison
Costco Wholesale Corp generates 4383% more annual revenue ($293.59B vs $6.55B). DAR leads profitability with a 9.1% profit margin vs 3.0%. DAR appears more attractively valued with a PEG of 4.31. COST earns a higher WallStSmart Score of 61/100 (C+).
COST
Buy61
out of 100
Grade: C+
DAR
Buy60
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for COST.
Margin of Safety
+17.8%
Fair Value
$60.34
Current Price
$59.76
$0.58 discount
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 26 in profit
Revenue surging 21.5% year-over-year
Earnings expanding 45.5% YoY
Generating 2.0B in free cash flow
Earnings expanding 2914.0% YoY
Attractively priced relative to earnings
Reasonable price relative to book value
16.4% revenue growth
Areas to Watch
3.0% margin — thin
Operating margin of 3.7%
Expensive relative to growth rate
Premium valuation, high expectations priced in
Grey zone — moderate risk
ROE of 4.6% — below average capital efficiency
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull 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.
Bull Case : DAR
The strongest argument for DAR centers on EPS Growth, P/E Ratio, Price/Book. Revenue growth of 16.4% demonstrates continued momentum.
Bear Case : COST
The primary concerns for COST are Profit Margin, Operating Margin, PEG Ratio. A P/E of 46.7x leaves little room for execution misses. Thin 3.0% margins leave little buffer for downturns.
Bear Case : DAR
The primary concerns for DAR are Altman Z-Score, Return on Equity, PEG Ratio.
Key Dynamics to Monitor
DAR carries more volatility with a beta of 1.04 — 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.
Monitor DISCOUNT STORES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
COST scores higher overall (61/100 vs 60/100) and 21.5% revenue growth. DAR offers better value entry with a 17.8% 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.
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 →Darling Ingredients Inc
CONSUMER DEFENSIVE · PACKAGED FOODS · USA
Darling Ingredients Inc. develops, produces and sells natural ingredients from edible and non-edible bio-nutrients. The company is headquartered in Irving, Texas.
Visit Website →Compare with Other DISCOUNT STORES Stocks
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