Costco Wholesale Corp (COST)vsKroger Company (KR)
COST
Costco Wholesale Corp
$983.86
+1.29%
CONSUMER DEFENSIVE · Cap: $436.71B
KR
Kroger Company
$73.22
+1.99%
CONSUMER DEFENSIVE · Cap: $44.96B
Smart Verdict
WallStSmart Research — data-driven comparison
Costco Wholesale Corp generates 94% more annual revenue ($286.27B vs $147.64B). COST leads profitability with a 3.0% profit margin vs 0.7%. KR appears more attractively valued with a PEG of 1.73. KR earns a higher WallStSmart Score of 55/100 (C).
COST
Buy53
out of 100
Grade: C-
KR
Buy55
out of 100
Grade: C
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
+4.7%
Fair Value
$72.07
Current Price
$73.22
$1.15 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
Earnings expanding 50.1% YoY
Safe zone — low bankruptcy risk
Generating 1.8B in free cash flow
Areas to Watch
Trading at 13.6x book value
3.0% margin — thin
Operating margin of 3.7%
Expensive relative to growth rate
Expensive relative to growth rate
1.2% revenue growth
0.7% margin — thin
Operating margin of 3.5%
Comparative Analysis Report
WallStSmart ResearchBull Case : COST
The strongest argument for COST centers on Market Cap, Altman Z-Score, Return on Equity.
Bull Case : KR
The strongest argument for KR centers on EPS Growth, Altman Z-Score, Free Cash Flow.
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 : KR
The primary concerns for KR are PEG Ratio, Revenue Growth, Profit Margin. A P/E of 47.5x leaves little room for execution misses. Thin 0.7% margins leave little buffer for downturns.
Key Dynamics to Monitor
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.
KR generates stronger free cash flow (1.8B), providing more financial flexibility.
Monitor DISCOUNT STORES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
KR scores higher overall (55/100 vs 53/100). 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.
Visit Website →Kroger Company
CONSUMER DEFENSIVE · GROCERY STORES · USA
The Kroger Company, or simply Kroger, is an American retail company founded by Bernard Kroger in 1883 in Cincinnati, Ohio.
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