Costco Wholesale Corp (COST)vsMedtronic PLC (MDT)
COST
Costco Wholesale Corp
$974.86
+0.11%
CONSUMER DEFENSIVE · Cap: $432.25B
MDT
Medtronic PLC
$87.89
+1.51%
HEALTHCARE · Cap: $110.62B
Smart Verdict
WallStSmart Research — data-driven comparison
Costco Wholesale Corp generates 707% more annual revenue ($286.27B vs $35.48B). MDT leads profitability with a 13.0% profit margin vs 3.0%. MDT appears more attractively valued with a PEG of 1.50. MDT earns a higher WallStSmart Score of 56/100 (C).
COST
Buy53
out of 100
Grade: C-
MDT
Buy56
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-74.7%
Fair Value
$558.15
Current Price
$974.86
$416.71 premium
Margin of Safety
-255.7%
Fair Value
$24.34
Current Price
$87.89
$63.55 premium
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
Large-cap with strong market position
Reasonable price relative to book value
Strong operational efficiency at 20.0%
Generating 2.3B in free cash flow
Areas to Watch
Trading at 13.5x book value
3.0% margin — thin
Operating margin of 3.7%
Expensive relative to growth rate
Earnings declined 11.8%
Comparative Analysis Report
WallStSmart ResearchBull Case : COST
The strongest argument for COST centers on Market Cap, Altman Z-Score, Return on Equity.
Bull Case : MDT
The strongest argument for MDT centers on Market Cap, Price/Book, Operating Margin.
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 : MDT
The primary concerns for MDT are EPS Growth.
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.
MDT generates stronger free cash flow (2.3B), providing more financial flexibility.
Monitor DISCOUNT STORES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
MDT scores higher overall (56/100 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 →Medtronic PLC
HEALTHCARE · MEDICAL DEVICES · USA
Medtronic plc is an American-Irish registered medical device company that primarily operates in the United States. Medtronic has an operational and executive headquarters in Fridley, Minnesota in the US.
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