WallStSmart

Costco Wholesale Corp (COST)vsKimberly-Clark Corporation (KMB)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Costco Wholesale Corp generates 1629% more annual revenue ($286.27B vs $16.56B). KMB leads profitability with a 12.8% profit margin vs 3.0%. KMB appears more attractively valued with a PEG of 1.99. KMB earns a higher WallStSmart Score of 63/100 (C+).

COST

Buy

61

out of 100

Grade: C+

Growth: 8.0Profit: 6.5Value: 3.0Quality: 7.5
Piotroski: 4/9Altman Z: 4.84

KMB

Buy

63

out of 100

Grade: C+

Growth: 4.7Profit: 8.0Value: 4.0Quality: 4.0
Piotroski: 3/9Altman Z: 2.19
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for COST.

KMBSignificantly Overvalued (-18.8%)

Margin of Safety

-18.8%

Fair Value

$90.54

Current Price

$95.75

$5.21 premium

UndervaluedFair: $90.54Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

COST6 strengths · Avg: 9.0/10
Market CapQuality
$449.00B10/10

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

Revenue GrowthGrowth
21.5%8/10

Revenue surging 21.5% year-over-year

EPS GrowthGrowth
45.5%8/10

Earnings expanding 45.5% YoY

KMB1 strengths · Avg: 10.0/10
Return on EquityProfitability
111.7%10/10

Every $100 of equity generates 112 in profit

Areas to Watch

COST4 concerns · Avg: 2.5/10
Profit MarginProfitability
3.0%3/10

3.0% margin — thin

Operating MarginProfitability
3.7%3/10

Operating margin of 3.7%

PEG RatioValuation
5.142/10

Expensive relative to growth rate

P/E RatioValuation
52.6x2/10

Premium valuation, high expectations priced in

KMB4 concerns · Avg: 3.8/10
PEG RatioValuation
1.994/10

Expensive relative to growth rate

Price/BookValuation
17.7x4/10

Trading at 17.7x book value

Revenue GrowthGrowth
2.7%4/10

2.7% revenue growth

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : COST

The strongest argument for COST centers on Market Cap, Altman Z-Score, Return on Equity. Revenue growth of 21.5% demonstrates continued momentum.

Bull Case : KMB

The strongest argument for KMB centers on Return on Equity.

Bear Case : COST

The primary concerns for COST are Profit Margin, Operating Margin, PEG Ratio. A P/E of 52.6x leaves little room for execution misses. Thin 3.0% margins leave little buffer for downturns.

Bear Case : KMB

The primary concerns for KMB are PEG Ratio, Price/Book, Revenue Growth. Debt-to-equity of 4.77 is elevated, increasing financial risk.

Key Dynamics to Monitor

COST profiles as a growth stock while KMB is a value play — different risk/reward profiles.

COST carries more volatility with a beta of 0.91 — expect wider price swings.

COST is growing revenue faster at 21.5% — sustainability is the question.

COST generates stronger free cash flow (1.7B), providing more financial flexibility.

Bottom Line

KMB scores higher overall (63/100 vs 61/100). 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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Kimberly-Clark Corporation

CONSUMER DEFENSIVE · HOUSEHOLD & PERSONAL PRODUCTS · USA

Kimberly-Clark Corporation is an American multinational personal care corporation that produces mostly paper-based consumer products. The company manufactures sanitary paper products and surgical & medical instruments. Kimberly-Clark brand name products include Kleenex facial tissue, Kotex feminine hygiene products, Cottonelle, Scott and Andrex toilet paper, Wypall utility wipes, KimWipes scientific cleaning wipes and Huggies disposable diapers and baby wipes.

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