WallStSmart

Costco Wholesale Corp (COST)vsMagnera Corp placeholder (MAGN)

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Smart Verdict

WallStSmart Research — data-driven comparison

Costco Wholesale Corp generates 8590% more annual revenue ($286.27B vs $3.29B). COST leads profitability with a 3.0% profit margin vs -4.0%. MAGN appears more attractively valued with a PEG of 4.23. COST earns a higher WallStSmart Score of 61/100 (C+).

COST

Buy

61

out of 100

Grade: C+

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

MAGN

Hold

47

out of 100

Grade: D+

Growth: 6.7Profit: 3.0Value: 5.7Quality: 5.5
Piotroski: 4/9Altman Z: 1.20
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for COST.

MAGNUndervalued (+89.8%)

Margin of Safety

+89.8%

Fair Value

$143.42

Current Price

$9.98

$133.44 discount

UndervaluedFair: $143.42Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

COST6 strengths · Avg: 9.0/10
Market CapQuality
$450.10B10/10

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

MAGN1 strengths · Avg: 10.0/10
Price/BookValuation
0.3x10/10

Reasonable price relative to book value

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
5.532/10

Expensive relative to growth rate

P/E RatioValuation
52.6x2/10

Premium valuation, high expectations priced in

MAGN4 concerns · Avg: 3.3/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Market CapQuality
$368.46M3/10

Smaller company, higher risk/reward

Operating MarginProfitability
4.5%3/10

Operating margin of 4.5%

Debt/EquityHealth
1.963/10

Elevated debt levels

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 : MAGN

The strongest argument for MAGN centers on Price/Book. Revenue growth of 12.8% demonstrates continued momentum.

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 : MAGN

The primary concerns for MAGN are EPS Growth, Market Cap, Operating Margin. Debt-to-equity of 1.96 is elevated, increasing financial risk.

Key Dynamics to Monitor

COST profiles as a growth stock while MAGN is a turnaround play — different risk/reward profiles.

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

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

Monitor DISCOUNT STORES industry trends, competitive dynamics, and regulatory changes.

Bottom Line

COST scores higher overall (61/100 vs 47/100) and 21.5% revenue growth. MAGN offers better value entry with a 89.8% 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.

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Magnera Corp placeholder

CONSUMER DEFENSIVE · HOUSEHOLD & PERSONAL PRODUCTS · USA

Magnera Corp (MAGN) is an innovative technology firm specializing in advanced data analytics and machine learning solutions, positioning itself at the forefront of digital transformation across multiple industries. The company’s strategic focus on enhancing operational efficiency is complemented by a robust portfolio of proprietary products, underscoring its commitment to research and development. With its strong emphasis on innovation and adaptability, Magnera Corp represents a compelling opportunity for institutional investors seeking to engage with the rapidly evolving technology landscape and leverage transformative growth drivers.

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