Costco Wholesale Corp (COST)vsFranco-Nevada Corporation (FNV)
COST
Costco Wholesale Corp
$974.86
+0.11%
CONSUMER DEFENSIVE · Cap: $432.25B
FNV
Franco-Nevada Corporation
$233.67
+1.28%
BASIC MATERIALS · Cap: $44.52B
Smart Verdict
WallStSmart Research — data-driven comparison
Costco Wholesale Corp generates 15767% more annual revenue ($286.27B vs $1.80B). FNV leads profitability with a 61.6% profit margin vs 3.0%. COST appears more attractively valued with a PEG of 5.41. FNV earns a higher WallStSmart Score of 68/100 (B-).
COST
Buy53
out of 100
Grade: C-
FNV
Strong Buy68
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-74.7%
Fair Value
$558.15
Current Price
$974.86
$416.71 premium
Margin of Safety
+6.0%
Fair Value
$274.25
Current Price
$233.67
$40.58 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
Generating 1.7B in free cash flow
Keeps 62 of every $100 in revenue as profit
Strong operational efficiency at 76.1%
Revenue surging 85.8% year-over-year
Earnings expanding 108.8% YoY
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Areas to Watch
Trading at 13.5x book value
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
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull Case : COST
The strongest argument for COST centers on Market Cap, Altman Z-Score, Return on Equity.
Bull Case : FNV
The strongest argument for FNV centers on Profit Margin, Operating Margin, Revenue Growth. Profitability is solid with margins at 61.6% and operating margin at 76.1%. Revenue growth of 85.8% demonstrates continued momentum.
Bear Case : COST
The primary concerns for COST are Price/Book, Profit Margin, Operating Margin. A P/E of 50.7x leaves little room for execution misses. Thin 3.0% margins leave little buffer for downturns.
Bear Case : FNV
The primary concerns for FNV are P/E Ratio, PEG Ratio, Free Cash Flow.
Key Dynamics to Monitor
COST profiles as a value stock while FNV is a growth play — different risk/reward profiles.
COST carries more volatility with a beta of 0.99 — expect wider price swings.
FNV is growing revenue faster at 85.8% — sustainability is the question.
COST generates stronger free cash flow (1.7B), providing more financial flexibility.
Bottom Line
FNV scores higher overall (68/100 vs 53/100), backed by strong 61.6% margins and 85.8% revenue growth. Both earn "Strong 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 →Franco-Nevada Corporation
BASIC MATERIALS · GOLD · USA
Franco-Nevada Corporation is a gold-focused royalty and flow company in the United States, Latin America, Canada, Australia, Europe and Africa, and internationally. The company is headquartered in Toronto, Canada.
Visit Website →Compare with Other DISCOUNT STORES Stocks
Want to dig deeper into these stocks?