Costco Wholesale Corp (COST)vsFreshpet Inc (FRPT)
COST
Costco Wholesale Corp
$1,014.53
+1.59%
CONSUMER DEFENSIVE · Cap: $450.10B
FRPT
Freshpet Inc
$66.14
+0.75%
CONSUMER DEFENSIVE · Cap: $3.25B
Smart Verdict
WallStSmart Research — data-driven comparison
Costco Wholesale Corp generates 25877% more annual revenue ($286.27B vs $1.10B). FRPT leads profitability with a 12.6% profit margin vs 3.0%. FRPT appears more attractively valued with a PEG of 4.17. FRPT earns a higher WallStSmart Score of 61/100 (C+).
COST
Buy61
out of 100
Grade: C+
FRPT
Buy61
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for COST.
Margin of Safety
+52.8%
Fair Value
$145.07
Current Price
$66.14
$78.93 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
Earnings expanding 79.2% YoY
Reasonable price relative to book value
Areas to Watch
3.0% margin — thin
Operating margin of 3.7%
Expensive relative to growth rate
Premium valuation, high expectations priced in
Moderate valuation
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 21.5% demonstrates continued momentum.
Bull Case : FRPT
The strongest argument for FRPT centers on EPS Growth, 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 : FRPT
The primary concerns for FRPT are P/E Ratio, PEG Ratio.
Key Dynamics to Monitor
COST profiles as a growth stock while FRPT is a value play — different risk/reward profiles.
FRPT carries more volatility with a beta of 1.78 — 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 61/100) and 21.5% revenue growth. FRPT offers better value entry with a 52.8% 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 →Freshpet Inc
CONSUMER DEFENSIVE · PACKAGED FOODS · USA
Freshpet, Inc. manufactures and markets fresh natural cat and dog food and treats in the United States, Canada and the United Kingdom. The company is headquartered in Secaucus, New Jersey.
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