Costco Wholesale Corp (COST)vsKeurig Dr Pepper Inc (KDP)
COST
Costco Wholesale Corp
$983.86
+1.29%
CONSUMER DEFENSIVE · Cap: $436.71B
KDP
Keurig Dr Pepper Inc
$26.23
-0.15%
CONSUMER DEFENSIVE · Cap: $35.64B
Smart Verdict
WallStSmart Research — data-driven comparison
Costco Wholesale Corp generates 1624% more annual revenue ($286.27B vs $16.60B). KDP leads profitability with a 12.5% profit margin vs 3.0%. KDP appears more attractively valued with a PEG of 0.89. KDP earns a higher WallStSmart Score of 69/100 (B-).
COST
Buy53
out of 100
Grade: C-
KDP
Strong Buy69
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-76.5%
Fair Value
$557.28
Current Price
$983.86
$426.58 premium
Margin of Safety
+2.7%
Fair Value
$30.72
Current Price
$26.23
$4.49 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
Reasonable price relative to book value
Growing faster than its price suggests
Attractively priced relative to earnings
Strong operational efficiency at 22.6%
Areas to Watch
Trading at 13.6x book value
3.0% margin — thin
Operating margin of 3.7%
Expensive relative to growth rate
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 : KDP
The strongest argument for KDP centers on Price/Book, PEG Ratio, P/E Ratio. Revenue growth of 10.5% demonstrates continued momentum. PEG of 0.89 suggests the stock is reasonably priced for its growth.
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 : KDP
The primary concerns for KDP are Altman Z-Score.
Key Dynamics to Monitor
COST carries more volatility with a beta of 0.99 — expect wider price swings.
KDP is growing revenue faster at 10.5% — sustainability is the question.
COST generates stronger free cash flow (1.7B), providing more financial flexibility.
Monitor DISCOUNT STORES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
KDP scores higher overall (69/100 vs 53/100) and 10.5% 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 →Keurig Dr Pepper Inc
CONSUMER DEFENSIVE · BEVERAGES - NON-ALCOHOLIC · USA
Keurig Dr Pepper Inc. is a beverage company in the United States and internationally. The company is headquartered in Burlington, Massachusetts.
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