WallStSmart

Costco Wholesale Corp (COST)vsGE Vernova LLC (GEV)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Costco Wholesale Corp generates 652% more annual revenue ($286.27B vs $38.07B). GEV leads profitability with a 12.8% profit margin vs 3.0%. GEV appears more attractively valued with a PEG of 3.34. GEV earns a higher WallStSmart Score of 55/100 (C-).

COST

Buy

53

out of 100

Grade: C-

Growth: 6.0Profit: 6.5Value: 2.0Quality: 7.5
Piotroski: 4/9Altman Z: 4.84

GEV

Buy

55

out of 100

Grade: C-

Growth: 5.3Profit: 6.5Value: 2.7Quality: 4.3
Piotroski: 4/9Altman Z: 1.02
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

COSTSignificantly Overvalued (-74.7%)

Margin of Safety

-74.7%

Fair Value

$558.15

Current Price

$974.86

$416.71 premium

UndervaluedFair: $558.15Overvalued
GEVOvervalued (-6.0%)

Margin of Safety

-6.0%

Fair Value

$829.76

Current Price

$923.69

$93.93 premium

UndervaluedFair: $829.76Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

COST5 strengths · Avg: 9.2/10
Market CapQuality
$432.25B10/10

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

Free Cash FlowQuality
$1.71B8/10

Generating 1.7B in free cash flow

GEV3 strengths · Avg: 9.3/10
Market CapQuality
$246.74B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
42.6%10/10

Every $100 of equity generates 43 in profit

Free Cash FlowQuality
$1.81B8/10

Generating 1.8B in free cash flow

Areas to Watch

COST4 concerns · Avg: 3.0/10
Price/BookValuation
13.5x4/10

Trading at 13.5x book value

Profit MarginProfitability
3.0%3/10

3.0% margin — thin

Operating MarginProfitability
3.7%3/10

Operating margin of 3.7%

PEG RatioValuation
5.412/10

Expensive relative to growth rate

GEV4 concerns · Avg: 2.5/10
Revenue GrowthGrowth
3.8%4/10

3.8% revenue growth

PEG RatioValuation
3.342/10

Expensive relative to growth rate

P/E RatioValuation
51.3x2/10

Premium valuation, high expectations priced in

Price/BookValuation
22.3x2/10

Trading at 22.3x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : COST

The strongest argument for COST centers on Market Cap, Altman Z-Score, Return on Equity.

Bull Case : GEV

The strongest argument for GEV centers on Market Cap, Return on Equity, Free Cash Flow.

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 : GEV

The primary concerns for GEV are Revenue Growth, PEG Ratio, P/E Ratio. A P/E of 51.3x leaves little room for execution misses.

Key Dynamics to Monitor

COST is growing revenue faster at 9.2% — sustainability is the question.

GEV generates stronger free cash flow (1.8B), providing more financial flexibility.

Monitor DISCOUNT STORES industry trends, competitive dynamics, and regulatory changes.

Bottom Line

GEV scores higher overall (55/100 vs 53/100). 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.

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GE Vernova LLC

INDUSTRIALS · SPECIALTY INDUSTRIAL MACHINERY · USA

GE Vernova LLC, an energy business company, generates electricity.

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