Costco Wholesale Corp (COST)vsMcCormick & Company Incorporated (MKC)
COST
Costco Wholesale Corp
$998.67
+1.59%
CONSUMER DEFENSIVE · Cap: $450.10B
MKC
McCormick & Company Incorporated
$50.54
-1.17%
CONSUMER DEFENSIVE · Cap: $13.59B
Smart Verdict
WallStSmart Research — data-driven comparison
Costco Wholesale Corp generates 3927% more annual revenue ($286.27B vs $7.11B). MKC leads profitability with a 23.1% profit margin vs 3.0%. MKC appears more attractively valued with a PEG of 1.96. MKC earns a higher WallStSmart Score of 80/100 (A-).
COST
Buy61
out of 100
Grade: C+
MKC
Exceptional Buy80
out of 100
Grade: A-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for COST.
Margin of Safety
+31.0%
Fair Value
$102.20
Current Price
$50.54
$51.66 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 30 in profit
Conservative balance sheet, low leverage
Revenue surging 21.5% year-over-year
Earnings expanding 45.5% YoY
Attractively priced relative to earnings
Earnings expanding 528.0% YoY
Every $100 of equity generates 25 in profit
Keeps 23 of every $100 in revenue as profit
Reasonable price relative to book value
16.7% revenue growth
Areas to Watch
3.0% margin — thin
Operating margin of 3.7%
Expensive relative to growth rate
Premium valuation, high expectations priced in
Expensive relative to growth rate
Distress zone — elevated risk
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 21.5% demonstrates continued momentum.
Bull Case : MKC
The strongest argument for MKC centers on P/E Ratio, EPS Growth, Return on Equity. Profitability is solid with margins at 23.1% and operating margin at 14.3%. Revenue growth of 16.7% 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 : MKC
The primary concerns for MKC are PEG Ratio, Altman Z-Score.
Key Dynamics to Monitor
COST carries more volatility with a beta of 0.98 — expect wider price swings.
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
MKC scores higher overall (80/100 vs 61/100), backed by strong 23.1% margins and 16.7% revenue growth. Both earn "Exceptional 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 →McCormick & Company Incorporated
CONSUMER DEFENSIVE · PACKAGED FOODS · USA
McCormick & Company is an American multinational food company that manufactures, markets, and distributes spices, seasoning mixes, condiments, and other flavoring products to retail outlets, food manufacturers, and foodservice businesses.
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