Costco Wholesale Corp (COST)vsKenon Holdings (KEN)
COST
Costco Wholesale Corp
$974.86
+0.11%
CONSUMER DEFENSIVE · Cap: $432.25B
KEN
Kenon Holdings
$81.36
+1.74%
UTILITIES · Cap: $4.06B
Smart Verdict
WallStSmart Research — data-driven comparison
Costco Wholesale Corp generates 36871% more annual revenue ($286.27B vs $774.30M). KEN leads profitability with a 63.8% profit margin vs 3.0%. COST earns a higher WallStSmart Score of 53/100 (C-).
COST
Buy53
out of 100
Grade: C-
KEN
Hold44
out of 100
Grade: D
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-74.7%
Fair Value
$558.15
Current Price
$974.86
$416.71 premium
Intrinsic value data unavailable for KEN.
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 64 of every $100 in revenue as profit
Every $100 of equity generates 24 in profit
Areas to Watch
Trading at 13.5x book value
3.0% margin — thin
Operating margin of 3.7%
Expensive relative to growth rate
Earnings declined 95.6%
Operating margin of -1.0%
Comparative Analysis Report
WallStSmart ResearchBull Case : COST
The strongest argument for COST centers on Market Cap, Altman Z-Score, Return on Equity.
Bull Case : KEN
The strongest argument for KEN centers on Profit Margin, Return on Equity. Profitability is solid with margins at 63.8% and operating margin at -1.0%.
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 : KEN
The primary concerns for KEN are EPS Growth, Operating Margin.
Key Dynamics to Monitor
COST profiles as a value stock while KEN is a mature play — different risk/reward profiles.
COST carries more volatility with a beta of 0.99 — 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
COST scores higher overall (53/100 vs 44/100). 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 →Kenon Holdings
UTILITIES · UTILITIES - INDEPENDENT POWER PRODUCERS · USA
Kenon Holdings Ltd., is the owner, developer and operator of power generation facilities in Israel and internationally. The company is headquartered in Singapore.
Visit Website →Compare with Other DISCOUNT STORES Stocks
Want to dig deeper into these stocks?