Costco Wholesale Corp (COST)vsEstee Lauder Companies Inc (EL)
COST
Costco Wholesale Corp
$971.87
+0.68%
CONSUMER DEFENSIVE · Cap: $423.23B
EL
Estee Lauder Companies Inc
$83.49
+0.71%
CONSUMER DEFENSIVE · Cap: $32.45B
Smart Verdict
WallStSmart Research — data-driven comparison
Costco Wholesale Corp generates 1879% more annual revenue ($293.59B vs $14.83B). COST leads profitability with a 3.0% profit margin vs -1.7%. EL appears more attractively valued with a PEG of 1.43. COST earns a higher WallStSmart Score of 61/100 (C+).
COST
Buy61
out of 100
Grade: C+
EL
Hold38
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for COST.
Margin of Safety
+29.5%
Fair Value
$149.43
Current Price
$83.49
$65.94 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 27 in profit
Revenue surging 21.5% year-over-year
Earnings expanding 45.5% YoY
Generating 2.0B in free cash flow
No standout strengths identified
Areas to Watch
3.0% margin — thin
Operating margin of 3.7%
Expensive relative to growth rate
Premium valuation, high expectations priced in
4.6% revenue growth
Distress zone — elevated risk
Weak financial health signals
ROE of -6.2% — 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 : EL
PEG of 1.43 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 48.1x leaves little room for execution misses. Thin 3.0% margins leave little buffer for downturns.
Bear Case : EL
The primary concerns for EL are Revenue Growth, Altman Z-Score, Piotroski F-Score. Debt-to-equity of 2.33 is elevated, increasing financial risk.
Key Dynamics to Monitor
COST profiles as a growth stock while EL is a turnaround play — different risk/reward profiles.
EL carries more volatility with a beta of 1.25 — expect wider price swings.
COST is growing revenue faster at 21.5% — sustainability is the question.
COST generates stronger free cash flow (2.0B), providing more financial flexibility.
Bottom Line
COST scores higher overall (61/100 vs 38/100) and 21.5% revenue growth. EL offers better value entry with a 29.5% margin of safety. 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.
Visit Website →Estee Lauder Companies Inc
CONSUMER DEFENSIVE · HOUSEHOLD & PERSONAL PRODUCTS · USA
The Estee Lauder Companies Inc. is an American multinational manufacturer and marketer of prestige skincare, makeup, fragrance and hair care products, based in Midtown Manhattan, New York City. The company owns a diverse portfolio of brands, distributed internationally through both digital commerce and retail channels.
Visit Website →Compare with Other DISCOUNT STORES Stocks
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