Costco Wholesale Corp (COST)vsFomento Economico Mexicano (FMX)
COST
Costco Wholesale Corp
$996.08
+1.36%
CONSUMER DEFENSIVE · Cap: $438.30B
FMX
Fomento Economico Mexicano
$123.70
-0.45%
CONSUMER DEFENSIVE · Cap: $41.22B
Smart Verdict
WallStSmart Research — data-driven comparison
Fomento Economico Mexicano generates 188% more annual revenue ($872.84B vs $303.15B). FMX leads profitability with a 3.6% profit margin vs 3.0%. COST appears more attractively valued with a PEG of 4.43. COST earns a higher WallStSmart Score of 55/100 (C-).
COST
Buy55
out of 100
Grade: C-
FMX
Buy54
out of 100
Grade: C-
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 26 in profit
Conservative balance sheet, low leverage
Generating 2.5B in free cash flow
Attractively priced relative to earnings
Earnings expanding 107.5% YoY
Generating 1.4B in free cash flow
Areas to Watch
Trading at 12.3x book value
3.0% margin — thin
Operating margin of 3.8%
Expensive relative to growth rate
3.6% margin — thin
Elevated debt levels
Expensive relative to growth rate
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 11.1% demonstrates continued momentum.
Bull Case : FMX
The strongest argument for FMX centers on P/E Ratio, EPS Growth, Free Cash Flow.
Bear Case : COST
The primary concerns for COST are Price/Book, Profit Margin, Operating Margin. A P/E of 47.6x leaves little room for execution misses. Thin 3.0% margins leave little buffer for downturns.
Bear Case : FMX
The primary concerns for FMX are Profit Margin, Debt/Equity, PEG Ratio. Thin 3.6% margins leave little buffer for downturns.
Key Dynamics to Monitor
COST carries more volatility with a beta of 0.87 — expect wider price swings.
COST is growing revenue faster at 11.1% — sustainability is the question.
COST generates stronger free cash flow (2.5B), providing more financial flexibility.
Monitor DISCOUNT STORES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
COST scores higher overall (55/100 vs 54/100) and 11.1% revenue growth. 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 →Fomento Economico Mexicano
CONSUMER DEFENSIVE · BEVERAGES - BREWERS · USA
Fomento Econmico Mexicano, SAB de CV, is a bottler of Coca-Cola brand beverages. The company is headquartered in Monterrey, Mexico.
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