Costco Wholesale Corp (COST)vsGrocery Outlet Holding Corp (GO)
COST
Costco Wholesale Corp
$983.86
+1.29%
CONSUMER DEFENSIVE · Cap: $436.71B
GO
Grocery Outlet Holding Corp
$7.07
-0.98%
CONSUMER DEFENSIVE · Cap: $693.94M
Smart Verdict
WallStSmart Research — data-driven comparison
Costco Wholesale Corp generates 6005% more annual revenue ($286.27B vs $4.69B). COST leads profitability with a 3.0% profit margin vs -4.8%. COST earns a higher WallStSmart Score of 53/100 (C-).
COST
Buy53
out of 100
Grade: C-
GO
Hold43
out of 100
Grade: D
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-76.5%
Fair Value
$557.28
Current Price
$983.86
$426.58 premium
Intrinsic value data unavailable for GO.
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
Reasonable price relative to book value
Areas to Watch
Trading at 13.6x book value
3.0% margin — thin
Operating margin of 3.7%
Expensive relative to growth rate
Grey zone — moderate risk
Smaller company, higher risk/reward
Operating margin of 2.1%
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : COST
The strongest argument for COST centers on Market Cap, Altman Z-Score, Return on Equity.
Bull Case : GO
The strongest argument for GO centers on Price/Book. Revenue growth of 10.7% demonstrates continued momentum.
Bear Case : COST
The primary concerns for COST are Price/Book, Profit Margin, Operating Margin. A P/E of 51.3x leaves little room for execution misses. Thin 3.0% margins leave little buffer for downturns.
Bear Case : GO
The primary concerns for GO are Altman Z-Score, Market Cap, Operating Margin. Debt-to-equity of 1.51 is elevated, increasing financial risk.
Key Dynamics to Monitor
COST profiles as a value stock while GO is a turnaround play — different risk/reward profiles.
COST carries more volatility with a beta of 0.99 — expect wider price swings.
GO is growing revenue faster at 10.7% — sustainability is the question.
COST generates stronger free cash flow (1.7B), providing more financial flexibility.
Bottom Line
COST scores higher overall (53/100 vs 43/100). Both earn "Buy" and "Hold" 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 →Grocery Outlet Holding Corp
CONSUMER DEFENSIVE · GROCERY STORES · USA
Grocery Outlet Holding Corp. The company is headquartered in Emeryville, California.
Visit Website →Compare with Other DISCOUNT STORES Stocks
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