Costco Wholesale Corp (COST)vsLamb Weston Holdings Inc (LW)
COST
Costco Wholesale Corp
$982.73
-0.95%
CONSUMER DEFENSIVE · Cap: $438.30B
LW
Lamb Weston Holdings Inc
$53.49
-0.54%
CONSUMER DEFENSIVE · Cap: $7.38B
Smart Verdict
WallStSmart Research — data-driven comparison
Costco Wholesale Corp generates 4477% more annual revenue ($303.15B vs $6.62B). LW leads profitability with a 3.9% profit margin vs 3.0%. LW appears more attractively valued with a PEG of 0.74. COST earns a higher WallStSmart Score of 55/100 (C-).
COST
Buy55
out of 100
Grade: C-
LW
Hold49
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for COST.
Margin of Safety
+26.6%
Fair Value
$68.43
Current Price
$53.49
$14.94 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 26 in profit
Conservative balance sheet, low leverage
Generating 2.5B in free cash flow
Growing faster than its price suggests
Areas to Watch
Trading at 12.2x book value
3.0% margin — thin
Operating margin of 3.8%
Expensive relative to growth rate
Moderate valuation
0.7% revenue growth
3.9% margin — thin
Earnings declined 54.3%
Comparative Analysis Report
WallStSmart ResearchBull Case : COST
The strongest argument for COST centers on Market Cap, Altman Z-Score, Return on Equity. Revenue growth of 11.1% demonstrates continued momentum.
Bull Case : LW
The strongest argument for LW centers on PEG Ratio. PEG of 0.74 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 47.6x leaves little room for execution misses. Thin 3.0% margins leave little buffer for downturns.
Bear Case : LW
The primary concerns for LW are P/E Ratio, Revenue Growth, Profit Margin. Debt-to-equity of 2.17 is elevated, increasing financial risk. Thin 3.9% margins leave little buffer for downturns.
Key Dynamics to Monitor
COST carries more volatility with a beta of 0.87 — expect wider price swings.
COST is growing revenue faster at 11.1% — sustainability is the question.
COST generates stronger free cash flow (2.5B), providing more financial flexibility.
Monitor DISCOUNT STORES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
COST scores higher overall (55/100 vs 49/100) and 11.1% revenue growth. LW offers better value entry with a 26.6% margin of safety. 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 →Lamb Weston Holdings Inc
CONSUMER DEFENSIVE · PACKAGED FOODS · USA
Lamb Weston Holdings, Inc. is an American food processing company that is one of the world's largest producers and processors of frozen french fries and other frozen potato products. It is headquartered in Eagle, Idaho.
Visit Website →Compare with Other DISCOUNT STORES Stocks
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