WallStSmart

Costco Wholesale Corp (COST)vsFarmmi Inc (FAMI)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Costco Wholesale Corp generates 1023320% more annual revenue ($286.27B vs $27.97M). COST leads profitability with a 3.0% profit margin vs -189.8%. 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

FAMI

Avoid

29

out of 100

Grade: F

Growth: 2.0Profit: 2.0Value: 6.7Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for COST.

FAMIUndervalued (+40.0%)

Margin of Safety

+40.0%

Fair Value

$2.15

Current Price

$1.19

$0.96 discount

UndervaluedFair: $2.15Overvalued

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

FAMI1 strengths · Avg: 10.0/10
Price/BookValuation
0.1x10/10

Reasonable price relative to book value

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

FAMI4 concerns · Avg: 2.3/10
Market CapQuality
$16.85M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-36.3%2/10

ROE of -36.3% — below average capital efficiency

Revenue GrowthGrowth
-57.3%2/10

Revenue declined 57.3%

EPS GrowthGrowth
-84.8%2/10

Earnings declined 84.8%

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 : FAMI

The strongest argument for FAMI 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 : FAMI

The primary concerns for FAMI are Market Cap, Return on Equity, Revenue Growth.

Key Dynamics to Monitor

COST profiles as a growth stock while FAMI is a turnaround play — different risk/reward profiles.

FAMI carries more volatility with a beta of 1.65 — 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 29/100) and 21.5% revenue growth. FAMI offers better value entry with a 40.0% 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.

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Farmmi Inc

CONSUMER DEFENSIVE · PACKAGED FOODS · China

Farmmi, Inc. processes and sells agricultural products in China, the United States, Japan, Canada, Europe, Korea, and the Middle East. The company is headquartered in Lishui, China.

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