Costco Wholesale Corp (COST)vsMonster Beverage Corp (MNST)
COST
Costco Wholesale Corp
$983.86
+1.29%
CONSUMER DEFENSIVE · Cap: $436.71B
MNST
Monster Beverage Corp
$71.83
-0.21%
CONSUMER DEFENSIVE · Cap: $70.27B
Smart Verdict
WallStSmart Research — data-driven comparison
Costco Wholesale Corp generates 3351% more annual revenue ($286.27B vs $8.29B). MNST leads profitability with a 23.0% profit margin vs 3.0%. MNST appears more attractively valued with a PEG of 2.13. MNST earns a higher WallStSmart Score of 68/100 (B-).
COST
Buy53
out of 100
Grade: C-
MNST
Strong Buy68
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-76.5%
Fair Value
$557.28
Current Price
$983.86
$426.58 premium
Margin of Safety
+11.0%
Fair Value
$90.79
Current Price
$71.83
$18.96 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
Generating 1.7B in free cash flow
Strong operational efficiency at 31.3%
Earnings expanding 66.6% YoY
Safe zone — low bankruptcy risk
Large-cap with strong market position
Every $100 of equity generates 27 in profit
Keeps 23 of every $100 in revenue as profit
Areas to Watch
Trading at 13.6x book value
3.0% margin — thin
Operating margin of 3.7%
Expensive relative to growth rate
Expensive relative to growth rate
Premium valuation, high expectations priced in
Trading at 8.5x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : COST
The strongest argument for COST centers on Market Cap, Altman Z-Score, Return on Equity.
Bull Case : MNST
The strongest argument for MNST centers on Operating Margin, EPS Growth, Altman Z-Score. Profitability is solid with margins at 23.0% and operating margin at 31.3%. Revenue growth of 17.6% demonstrates continued momentum.
Bear Case : COST
The primary concerns for COST are Price/Book, Profit Margin, Operating Margin. A P/E of 51.3x leaves little room for execution misses. Thin 3.0% margins leave little buffer for downturns.
Bear Case : MNST
The primary concerns for MNST are PEG Ratio, P/E Ratio, Price/Book.
Key Dynamics to Monitor
COST profiles as a value stock while MNST is a growth play — different risk/reward profiles.
COST carries more volatility with a beta of 0.99 — expect wider price swings.
MNST is growing revenue faster at 17.6% — sustainability is the question.
COST generates stronger free cash flow (1.7B), providing more financial flexibility.
Bottom Line
MNST scores higher overall (68/100 vs 53/100), backed by strong 23.0% margins and 17.6% revenue growth. Both earn "Strong 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 →Monster Beverage Corp
CONSUMER DEFENSIVE · BEVERAGES - NON-ALCOHOLIC · USA
Monster Beverage Corporation is an American beverage company that manufactures energy drinks including Monster Energy, Relentless and Burn.
Visit Website →Compare with Other DISCOUNT STORES Stocks
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