WallStSmart

Costco Wholesale Corp (COST)vsDavis Commodities Limited Ordinary Shares (DTCK)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Costco Wholesale Corp generates 178226% more annual revenue ($286.27B vs $160.53M). COST leads profitability with a 3.0% profit margin vs -3.0%. COST earns a higher WallStSmart Score of 61/100 (C+).

COST

Buy

61

out of 100

Grade: C+

Growth: 8.0Profit: 6.5Value: 3.0Quality: 7.5
Piotroski: 4/9Altman Z: 4.84

DTCK

Hold

39

out of 100

Grade: F

Growth: 4.7Profit: 2.0Value: 5.0Quality: 5.0

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

COST6 strengths · Avg: 9.0/10
Market CapQuality
$450.10B10/10

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

DTCK2 strengths · Avg: 10.0/10
Price/BookValuation
0.2x10/10

Reasonable price relative to book value

Revenue GrowthGrowth
42.1%10/10

Revenue surging 42.1% year-over-year

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
5.532/10

Expensive relative to growth rate

P/E RatioValuation
52.6x2/10

Premium valuation, high expectations priced in

DTCK4 concerns · Avg: 2.3/10
Market CapQuality
$1.37M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-52.5%2/10

ROE of -52.5% — below average capital efficiency

EPS GrowthGrowth
-96.9%2/10

Earnings declined 96.9%

Free Cash FlowQuality
$-1.74M2/10

Negative free cash flow — burning cash

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 : DTCK

The strongest argument for DTCK centers on Price/Book, Revenue Growth. Revenue growth of 42.1% demonstrates continued momentum.

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 : DTCK

The primary concerns for DTCK are Market Cap, Return on Equity, EPS Growth.

Key Dynamics to Monitor

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

COST carries more volatility with a beta of 0.98 — expect wider price swings.

DTCK is growing revenue faster at 42.1% — 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 39/100) and 21.5% revenue growth. Both earn "Buy" and "Hold" 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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Davis Commodities Limited Ordinary Shares

CONSUMER DEFENSIVE · FARM PRODUCTS · USA

Davis Commodities Limited, an investment holding company, is an agricultural commodity trading company in Asia, Africa, and the Middle East.

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