Costco Wholesale Corp (COST)vsELF Beauty Inc (ELF)
COST
Costco Wholesale Corp
$971.87
+0.68%
CONSUMER DEFENSIVE · Cap: $423.23B
ELF
ELF Beauty Inc
$51.45
+0.77%
CONSUMER DEFENSIVE · Cap: $3.63B
Smart Verdict
WallStSmart Research — data-driven comparison
Costco Wholesale Corp generates 109298% more annual revenue ($293.59B vs $268.37M). COST leads profitability with a 3.0% profit margin vs -0.2%. ELF appears more attractively valued with a PEG of 1.37. COST earns a higher WallStSmart Score of 61/100 (C+).
COST
Buy61
out of 100
Grade: C+
ELF
Hold49
out of 100
Grade: D+
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
Revenue surging 35.1% year-over-year
Earnings expanding 116.7% YoY
Areas to Watch
3.0% margin — thin
Operating margin of 3.7%
Expensive relative to growth rate
Premium valuation, high expectations priced in
Trading at 11.6x book value
ROE of 4.8% — below average capital efficiency
Operating margin of 1.7%
Weak financial health signals
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 : ELF
The strongest argument for ELF centers on Revenue Growth, EPS Growth. Revenue growth of 35.1% demonstrates continued momentum. PEG of 1.37 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 : ELF
The primary concerns for ELF are Price/Book, Return on Equity, Operating Margin. A P/E of 139.0x leaves little room for execution misses.
Key Dynamics to Monitor
COST profiles as a growth stock while ELF is a hypergrowth play — different risk/reward profiles.
ELF carries more volatility with a beta of 2.39 — expect wider price swings.
ELF is growing revenue faster at 35.1% — 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 49/100) 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.
Visit Website →ELF Beauty Inc
CONSUMER DEFENSIVE · HOUSEHOLD & PERSONAL PRODUCTS · USA
elf Beauty, Inc., offers skin care and cosmetic products under the elf, W3LL PEOPLE and Keys Soulcare brand names worldwide. The company is headquartered in Oakland, California.
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