Costco Wholesale Corp (COST)vsFresh Del Monte Produce Inc (FDP)
COST
Costco Wholesale Corp
$998.67
+1.59%
CONSUMER DEFENSIVE · Cap: $448.60B
FDP
Fresh Del Monte Produce Inc
$41.49
-1.05%
CONSUMER DEFENSIVE · Cap: $1.97B
Smart Verdict
WallStSmart Research — data-driven comparison
Costco Wholesale Corp generates 6523% more annual revenue ($286.27B vs $4.32B). COST leads profitability with a 3.0% profit margin vs 2.1%. FDP appears more attractively valued with a PEG of 2.35. COST earns a higher WallStSmart Score of 61/100 (C+).
COST
Buy61
out of 100
Grade: C+
FDP
Buy56
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-88.3%
Fair Value
$530.40
Current Price
$998.67
$468.27 premium
Margin of Safety
+23.3%
Fair Value
$52.06
Current Price
$41.49
$10.57 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
Earnings expanding 56.7% YoY
Areas to Watch
3.0% margin — thin
Operating margin of 3.7%
Expensive relative to growth rate
Premium valuation, high expectations priced in
Expensive relative to growth rate
0.6% revenue growth
Smaller company, higher risk/reward
ROE of 4.6% — 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 : FDP
The strongest argument for FDP centers on Price/Book, EPS Growth.
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 : FDP
The primary concerns for FDP are PEG Ratio, Revenue Growth, Market Cap. Thin 2.1% margins leave little buffer for downturns.
Key Dynamics to Monitor
COST profiles as a growth stock while FDP is a value play — different risk/reward profiles.
COST carries more volatility with a beta of 0.98 — 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 56/100) and 21.5% revenue growth. FDP offers better value entry with a 23.3% margin of safety. Both earn "Buy" and "Buy" 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 →Fresh Del Monte Produce Inc
CONSUMER DEFENSIVE · FARM PRODUCTS · USA
Fresh Del Monte Produce Inc. produces, markets and distributes fresh and fresh cut fruits and vegetables in North America, Europe, the Middle East, Africa, Asia and internationally. The company is headquartered in George Town, Cayman Islands.
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