WallStSmart

Costco Wholesale Corp (COST)vsFunctional Brands, Inc. Common Stock (MEHA)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Costco Wholesale Corp generates 4329704% more annual revenue ($286.27B vs $6.61M). MEHA leads profitability with a 11.5% profit margin vs 3.0%. MEHA trades at a lower P/E of 10.8x. 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

MEHA

Hold

44

out of 100

Grade: D

Growth: 2.7Profit: 5.0Value: 8.3Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for COST.

MEHAUndervalued (+55.9%)

Margin of Safety

+55.9%

Fair Value

$0.49

Current Price

$0.09

$0.40 discount

UndervaluedFair: $0.49Overvalued

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

MEHA3 strengths · Avg: 10.0/10
P/E RatioValuation
10.8x10/10

Attractively priced relative to earnings

Price/BookValuation
1.2x10/10

Reasonable price relative to book value

Return on EquityProfitability
106.6%10/10

Every $100 of equity generates 107 in profit

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

MEHA4 concerns · Avg: 2.8/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Market CapQuality
$2.58M3/10

Smaller company, higher risk/reward

Revenue GrowthGrowth
-11.0%2/10

Revenue declined 11.0%

Free Cash FlowQuality
$-53.50M2/10

Negative free cash flow — burning cash

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 : MEHA

The strongest argument for MEHA centers on P/E Ratio, Price/Book, Return on Equity.

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 : MEHA

The primary concerns for MEHA are EPS Growth, Market Cap, Revenue Growth.

Key Dynamics to Monitor

COST profiles as a growth stock while MEHA is a declining 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 44/100) and 21.5% revenue growth. MEHA offers better value entry with a 55.9% 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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Functional Brands, Inc. Common Stock

CONSUMER DEFENSIVE · PACKAGED FOODS · USA

Functional Brands, Inc. (ticker: MEHA) is a forward-thinking company in the consumer packaged goods sector, specializing in functional food and beverage products that cater to the growing health and wellness market. With a robust focus on research and development, the company is well-positioned to leverage increasing consumer demand for innovative, sustainable offerings that promote healthier lifestyles. As the wellness industry continues to evolve, Functional Brands is strategically aligned for substantial growth, making it an attractive investment opportunity for institutional investors seeking exposure to sustainable and impactful brands.

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