WallStSmart

Costco Wholesale Corp (COST)vsDell Technologies Inc (DELL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Costco Wholesale Corp generates 152% more annual revenue ($286.27B vs $113.54B). DELL leads profitability with a 5.2% profit margin vs 3.0%. DELL appears more attractively valued with a PEG of 0.87. DELL earns a higher WallStSmart Score of 75/100 (B+).

COST

Buy

61

out of 100

Grade: C+

Growth: 8.0Profit: 6.5Value: 2.0Quality: 7.5
Piotroski: 4/9Altman Z: 4.84

DELL

Strong Buy

75

out of 100

Grade: B+

Growth: 8.0Profit: 6.5Value: 8.0Quality: 6.0
Piotroski: 5/9Altman Z: 1.61
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

COSTSignificantly Overvalued (-89.9%)

Margin of Safety

-89.9%

Fair Value

$535.26

Current Price

$1012.79

$477.53 premium

UndervaluedFair: $535.26Overvalued
DELLUndervalued (+80.8%)

Margin of Safety

+80.8%

Fair Value

$644.85

Current Price

$211.64

$433.21 discount

UndervaluedFair: $644.85Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

COST6 strengths · Avg: 9.0/10
Market CapQuality
$448.84B10/10

Mega-cap, among the largest globally

Altman Z-ScoreHealth
4.8410/10

Safe zone — low bankruptcy risk

Return on EquityProfitability
29.6%9/10

Every $100 of equity generates 30 in profit

Debt/EquityHealth
0.279/10

Conservative balance sheet, low leverage

Revenue GrowthGrowth
21.5%8/10

Revenue surging 21.5% year-over-year

EPS GrowthGrowth
45.5%8/10

Earnings expanding 45.5% YoY

DELL6 strengths · Avg: 9.5/10
Return on EquityProfitability
44.3%10/10

Every $100 of equity generates 44 in profit

Revenue GrowthGrowth
39.5%10/10

Revenue surging 39.5% year-over-year

EPS GrowthGrowth
57.3%10/10

Earnings expanding 57.3% YoY

Debt/EquityHealth
-11.9210/10

Conservative balance sheet, low leverage

Market CapQuality
$136.65B9/10

Large-cap with strong market position

PEG RatioValuation
0.878/10

Growing faster than its price suggests

Areas to Watch

COST4 concerns · Avg: 2.5/10
Profit MarginProfitability
3.0%3/10

3.0% margin — thin

Operating MarginProfitability
3.7%3/10

Operating margin of 3.7%

PEG RatioValuation
5.142/10

Expensive relative to growth rate

P/E RatioValuation
52.6x2/10

Premium valuation, high expectations priced in

DELL2 concerns · Avg: 3.5/10
Altman Z-ScoreHealth
1.614/10

Distress zone — elevated risk

Profit MarginProfitability
5.2%3/10

5.2% margin — thin

Comparative Analysis Report

WallStSmart Research

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.

Bull Case : DELL

The strongest argument for DELL centers on Return on Equity, Revenue Growth, EPS Growth. Revenue growth of 39.5% demonstrates continued momentum. PEG of 0.87 suggests the stock is reasonably priced for its 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.

Bear Case : DELL

The primary concerns for DELL are Altman Z-Score, Profit Margin.

Key Dynamics to Monitor

COST profiles as a growth stock while DELL is a hypergrowth play — different risk/reward profiles.

DELL carries more volatility with a beta of 1.06 — expect wider price swings.

DELL is growing revenue faster at 39.5% — sustainability is the question.

DELL generates stronger free cash flow (4.0B), providing more financial flexibility.

Bottom Line

DELL scores higher overall (75/100 vs 61/100) and 39.5% revenue growth. 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.

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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Dell Technologies Inc

TECHNOLOGY · COMPUTER HARDWARE · USA

Dell Technologies Inc. designs, develops, manufactures, markets, sells and supports information technology solutions, products and services worldwide. The company is headquartered in Round Rock, Texas.

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