Costco Wholesale Corp (COST)vsDanaher Corporation (DHR)
COST
Costco Wholesale Corp
$974.86
+0.11%
CONSUMER DEFENSIVE · Cap: $432.25B
DHR
Danaher Corporation
$187.15
-1.55%
HEALTHCARE · Cap: $134.43B
Smart Verdict
WallStSmart Research — data-driven comparison
Costco Wholesale Corp generates 1065% more annual revenue ($286.27B vs $24.57B). DHR leads profitability with a 14.7% profit margin vs 3.0%. DHR appears more attractively valued with a PEG of 1.23. DHR earns a higher WallStSmart Score of 60/100 (C).
COST
Buy53
out of 100
Grade: C-
DHR
Buy60
out of 100
Grade: C
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
-38.6%
Fair Value
$135.07
Current Price
$187.15
$52.08 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
Large-cap with strong market position
Reasonable price relative to book value
Strong operational efficiency at 22.2%
Generating 1.7B 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
4.6% revenue growth
ROE of 7.0% — below average capital efficiency
Comparative Analysis Report
WallStSmart ResearchBull Case : COST
The strongest argument for COST centers on Market Cap, Altman Z-Score, Return on Equity.
Bull Case : DHR
The strongest argument for DHR centers on Market Cap, Price/Book, Operating Margin. PEG of 1.23 suggests the stock is reasonably priced for its growth.
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 : DHR
The primary concerns for DHR are P/E Ratio, Revenue Growth, Return on Equity.
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.
DHR generates stronger free cash flow (1.7B), providing more financial flexibility.
Monitor DISCOUNT STORES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
DHR scores higher overall (60/100 vs 53/100). 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 →Danaher Corporation
HEALTHCARE · DIAGNOSTICS & RESEARCH · USA
Danaher Corporation is an American globally diversified conglomerate with its headquarters in Washington, D.C.. The company designs, manufactures, and markets professional, medical, industrial, and commercial products and services. The company's 3 platforms are Life Sciences, Diagnostics, and Environmental & Applied Solutions.
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