Costco Wholesale Corp (COST)vsMcCormick & Company Incorporated (MKC-V)
COST
Costco Wholesale Corp
$996.08
+1.36%
CONSUMER DEFENSIVE · Cap: $438.30B
MKC-V
McCormick & Company Incorporated
$46.94
+1.93%
CONSUMER DEFENSIVE · Cap: $13.01B
Smart Verdict
WallStSmart Research — data-driven comparison
Costco Wholesale Corp generates 3844% more annual revenue ($303.15B vs $7.69B). MKC-V leads profitability with a 19.4% profit margin vs 3.0%. MKC-V appears more attractively valued with a PEG of 2.04. MKC-V earns a higher WallStSmart Score of 59/100 (C).
COST
Buy55
out of 100
Grade: C-
MKC-V
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for COST.
Margin of Safety
+77.9%
Fair Value
$325.30
Current Price
$46.94
$278.36 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
Attractively priced relative to earnings
Every $100 of equity generates 21 in profit
Reasonable price relative to book value
17.4% revenue growth
Areas to Watch
Trading at 12.3x book value
3.0% margin — thin
Operating margin of 3.8%
Expensive relative to growth rate
Expensive relative to growth rate
Distress zone — elevated risk
Earnings declined 57.1%
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 : MKC-V
The strongest argument for MKC-V centers on P/E Ratio, Return on Equity, Price/Book. Profitability is solid with margins at 19.4% and operating margin at 17.8%. Revenue growth of 17.4% demonstrates continued momentum.
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 : MKC-V
The primary concerns for MKC-V are PEG Ratio, Altman Z-Score, EPS Growth.
Key Dynamics to Monitor
COST profiles as a value stock while MKC-V is a growth play — different risk/reward profiles.
COST carries more volatility with a beta of 0.87 — expect wider price swings.
MKC-V is growing revenue faster at 17.4% — sustainability is the question.
COST generates stronger free cash flow (2.5B), providing more financial flexibility.
Bottom Line
MKC-V scores higher overall (59/100 vs 55/100), backed by strong 19.4% margins and 17.4% revenue growth. 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 →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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