WallStSmart

Costco Wholesale Corp (COST)vsLinde plc Ordinary Shares (LIN)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Costco Wholesale Corp generates 742% more annual revenue ($286.27B vs $33.99B). LIN leads profitability with a 20.3% profit margin vs 3.0%. LIN appears more attractively valued with a PEG of 2.29. LIN earns a higher WallStSmart Score of 56/100 (C).

COST

Buy

53

out of 100

Grade: C-

Growth: 6.0Profit: 6.5Value: 2.0Quality: 7.5
Piotroski: 4/9Altman Z: 4.84

LIN

Buy

56

out of 100

Grade: C

Growth: 6.0Profit: 8.0Value: 7.3Quality: 5.0
Piotroski: 3/9Altman Z: 1.49
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

COSTSignificantly Overvalued (-74.7%)

Margin of Safety

-74.7%

Fair Value

$558.15

Current Price

$974.86

$416.71 premium

UndervaluedFair: $558.15Overvalued
LINSignificantly Overvalued (-396.3%)

Margin of Safety

-396.3%

Fair Value

$99.21

Current Price

$492.34

$393.13 premium

UndervaluedFair: $99.21Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

COST5 strengths · Avg: 9.2/10
Market CapQuality
$432.25B10/10

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

Free Cash FlowQuality
$1.71B8/10

Generating 1.7B in free cash flow

LIN4 strengths · Avg: 8.8/10
Market CapQuality
$222.36B10/10

Mega-cap, among the largest globally

Profit MarginProfitability
20.3%9/10

Keeps 20 of every $100 in revenue as profit

Operating MarginProfitability
28.2%8/10

Strong operational efficiency at 28.2%

Free Cash FlowQuality
$1.57B8/10

Generating 1.6B in free cash flow

Areas to Watch

COST4 concerns · Avg: 3.0/10
Price/BookValuation
13.5x4/10

Trading at 13.5x book value

Profit MarginProfitability
3.0%3/10

3.0% margin — thin

Operating MarginProfitability
3.7%3/10

Operating margin of 3.7%

PEG RatioValuation
5.412/10

Expensive relative to growth rate

LIN4 concerns · Avg: 3.3/10
PEG RatioValuation
2.294/10

Expensive relative to growth rate

P/E RatioValuation
32.9x4/10

Premium valuation, high expectations priced in

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

EPS GrowthGrowth
-9.4%2/10

Earnings declined 9.4%

Comparative Analysis Report

WallStSmart Research

Bull Case : COST

The strongest argument for COST centers on Market Cap, Altman Z-Score, Return on Equity.

Bull Case : LIN

The strongest argument for LIN centers on Market Cap, Profit Margin, Operating Margin. Profitability is solid with margins at 20.3% and operating margin at 28.2%.

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 : LIN

The primary concerns for LIN are PEG Ratio, P/E Ratio, Piotroski F-Score.

Key Dynamics to Monitor

COST profiles as a value stock while LIN 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

LIN scores higher overall (56/100 vs 53/100), backed by strong 20.3% 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.

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Linde plc Ordinary Shares

BASIC MATERIALS · SPECIALTY CHEMICALS · USA

Linde plc is a multinational chemical company. It is the largest industrial gas company by market share and revenue. It serves customers in the healthcare, petroleum refining, manufacturing, food, beverage carbonation, fiber-optics, steel making, aerospace, chemicals, electronics and water treatment industries. The company's primary business is the manufacturing and distribution of atmospheric gases, including oxygen, nitrogen, argon, rare gases, and process gases, including carbon dioxide, helium, hydrogen, electronic gases, specialty gases, and acetylene.

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