Costco Wholesale Corp (COST)vsKrispy Kreme Inc (DNUT)
COST
Costco Wholesale Corp
$1,014.53
-0.13%
CONSUMER DEFENSIVE · Cap: $450.10B
DNUT
Krispy Kreme Inc
$3.82
-3.05%
CONSUMER DEFENSIVE · Cap: $679.19M
Smart Verdict
WallStSmart Research — data-driven comparison
Costco Wholesale Corp generates 18701% more annual revenue ($286.27B vs $1.52B). COST leads profitability with a 3.0% profit margin vs -33.9%. COST earns a higher WallStSmart Score of 61/100 (C+).
COST
Buy61
out of 100
Grade: C+
DNUT
Avoid34
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-89.9%
Fair Value
$532.85
Current Price
$1014.53
$481.68 premium
Margin of Safety
+74.8%
Fair Value
$11.97
Current Price
$3.82
$8.15 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
Reasonable price relative to book value
Areas to Watch
3.0% margin — thin
Operating margin of 3.7%
Expensive relative to growth rate
Premium valuation, high expectations priced in
0.0% earnings growth
Smaller company, higher risk/reward
Operating margin of 1.5%
ROE of -56.9% — 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. Revenue growth of 21.5% demonstrates continued momentum.
Bull Case : DNUT
The strongest argument for DNUT centers on 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 : DNUT
The primary concerns for DNUT are EPS Growth, Market Cap, Operating Margin. Debt-to-equity of 2.77 is elevated, increasing financial risk.
Key Dynamics to Monitor
COST profiles as a growth stock while DNUT is a turnaround play — different risk/reward profiles.
DNUT carries more volatility with a beta of 1.27 — expect wider price swings.
COST is growing revenue faster at 21.5% — sustainability is the question.
COST generates stronger free cash flow (1.7B), providing more financial flexibility.
Bottom Line
COST scores higher overall (61/100 vs 34/100) and 21.5% revenue growth. DNUT offers better value entry with a 74.8% margin of safety. Both earn "Buy" and "Avoid" 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 →Krispy Kreme Inc
CONSUMER DEFENSIVE · GROCERY STORES · USA
Krispy Kreme, Inc., is a brand-name retailer and wholesaler of donuts, coffee and other packaged complementary drinks, treats, and candies. The company is headquartered in Winston-Salem, North Carolina.
Visit Website →Compare with Other DISCOUNT STORES Stocks
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