Costco Wholesale Corp (COST)vsIntercontinental Exchange Inc (ICE)
COST
Costco Wholesale Corp
$974.86
+0.11%
CONSUMER DEFENSIVE · Cap: $432.25B
ICE
Intercontinental Exchange Inc
$156.83
+0.65%
FINANCIAL SERVICES · Cap: $88.85B
Smart Verdict
WallStSmart Research — data-driven comparison
Costco Wholesale Corp generates 2783% more annual revenue ($286.27B vs $9.93B). ICE leads profitability with a 33.4% profit margin vs 3.0%. ICE appears more attractively valued with a PEG of 2.20. ICE earns a higher WallStSmart Score of 63/100 (C+).
COST
Buy53
out of 100
Grade: C-
ICE
Buy63
out of 100
Grade: C+
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
+38.6%
Fair Value
$255.26
Current Price
$156.83
$98.43 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 33 of every $100 in revenue as profit
Strong operational efficiency at 49.6%
Large-cap with strong market position
Earnings expanding 23.4% YoY
Generating 1.1B in free cash flow
Areas to Watch
Trading at 13.5x book value
3.0% margin — thin
Operating margin of 3.7%
Expensive relative to growth rate
Expensive relative to growth rate
Moderate valuation
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : COST
The strongest argument for COST centers on Market Cap, Altman Z-Score, Return on Equity.
Bull Case : ICE
The strongest argument for ICE centers on Profit Margin, Operating Margin, Market Cap. Profitability is solid with margins at 33.4% and operating margin at 49.6%.
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 : ICE
The primary concerns for ICE are PEG Ratio, P/E Ratio, Altman Z-Score.
Key Dynamics to Monitor
COST profiles as a value stock while ICE is a mature play — different risk/reward profiles.
ICE carries more volatility with a beta of 1.05 — expect wider price swings.
COST is growing revenue faster at 9.2% — sustainability is the question.
COST generates stronger free cash flow (1.7B), providing more financial flexibility.
Bottom Line
ICE scores higher overall (63/100 vs 53/100), backed by strong 33.4% margins. 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 →Intercontinental Exchange Inc
FINANCIAL SERVICES · FINANCIAL DATA & STOCK EXCHANGES · USA
The Intercontinental Exchange (ICE) is an American Fortune 500 company formed in 2000 that operates global exchanges, clearing houses and provides mortgage technology, data and listing services. The company owns exchanges for financial and commodity markets, and operates regulated exchanges and marketplaces.
Visit Website →Compare with Other DISCOUNT STORES Stocks
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