Costco Wholesale Corp (COST)vsWalt Disney Company (DIS)
COST
Costco Wholesale Corp
$1,008.79
-0.32%
CONSUMER DEFENSIVE · Cap: $449.00B
DIS
Walt Disney Company
$108.02
-0.59%
COMMUNICATION SERVICES · Cap: $188.69B
Smart Verdict
WallStSmart Research — data-driven comparison
Costco Wholesale Corp generates 194% more annual revenue ($286.27B vs $97.26B). DIS leads profitability with a 11.5% profit margin vs 3.0%. DIS appears more attractively valued with a PEG of 3.08. COST earns a higher WallStSmart Score of 61/100 (C+).
COST
Buy61
out of 100
Grade: C+
DIS
Buy57
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-89.1%
Fair Value
$535.26
Current Price
$1008.79
$473.53 premium
Margin of Safety
+16.1%
Fair Value
$126.48
Current Price
$108.02
$18.46 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 30 in profit
Conservative balance sheet, low leverage
Revenue surging 21.5% year-over-year
Earnings expanding 45.5% YoY
Large-cap with strong market position
Attractively priced relative to earnings
Reasonable price relative to book value
Generating 4.9B in free cash flow
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
Expensive relative to growth rate
Earnings declined 29.8%
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 : DIS
The strongest argument for DIS centers on Market Cap, P/E Ratio, Price/Book.
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 : DIS
The primary concerns for DIS are Altman Z-Score, PEG Ratio, EPS Growth.
Key Dynamics to Monitor
COST profiles as a growth stock while DIS is a value play — different risk/reward profiles.
DIS carries more volatility with a beta of 1.42 — expect wider price swings.
COST is growing revenue faster at 21.5% — sustainability is the question.
DIS generates stronger free cash flow (4.9B), providing more financial flexibility.
Bottom Line
COST scores higher overall (61/100 vs 57/100) and 21.5% revenue growth. DIS offers better value entry with a 16.1% 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 →Walt Disney Company
COMMUNICATION SERVICES · ENTERTAINMENT · USA
The Walt Disney Company, commonly known as Disney, is an American diversified multinational mass media and entertainment conglomerate headquartered at the Walt Disney Studios complex in Burbank, California.
Visit Website →Compare with Other DISCOUNT STORES Stocks
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