Costco Wholesale Corp (COST)vsAltria Group (MO)
COST
Costco Wholesale Corp
$1,012.28
+1.77%
CONSUMER DEFENSIVE · Cap: $448.57B
MO
Altria Group
$78.03
+1.67%
CONSUMER DEFENSIVE · Cap: $129.80B
Smart Verdict
WallStSmart Research — data-driven comparison
Costco Wholesale Corp generates 1233% more annual revenue ($303.15B vs $22.75B). MO leads profitability with a 35.7% profit margin vs 3.0%. MO appears more attractively valued with a PEG of 2.99. MO earns a higher WallStSmart Score of 55/100 (C).
COST
Buy55
out of 100
Grade: C-
MO
Buy55
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for COST.
Margin of Safety
-50.8%
Fair Value
$51.74
Current Price
$78.03
$26.29 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 26 in profit
Conservative balance sheet, low leverage
Generating 2.5B in free cash flow
Keeps 36 of every $100 in revenue as profit
Strong operational efficiency at 54.2%
Conservative balance sheet, low leverage
Large-cap with strong market position
Attractively priced relative to earnings
16.8% revenue growth
Areas to Watch
Trading at 12.5x book value
3.0% margin — thin
Operating margin of 3.8%
Expensive relative to growth rate
ROE of 0.0% — below average capital efficiency
Expensive relative to growth rate
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 : MO
The strongest argument for MO centers on Profit Margin, Operating Margin, Debt/Equity. Profitability is solid with margins at 35.7% and operating margin at 54.2%. Revenue growth of 16.8% demonstrates continued momentum.
Bear Case : COST
The primary concerns for COST are Price/Book, Profit Margin, Operating Margin. A P/E of 48.8x leaves little room for execution misses. Thin 3.0% margins leave little buffer for downturns.
Bear Case : MO
The primary concerns for MO are Return on Equity, PEG Ratio.
Key Dynamics to Monitor
COST profiles as a value stock while MO is a growth play — different risk/reward profiles.
COST carries more volatility with a beta of 0.87 — expect wider price swings.
MO is growing revenue faster at 16.8% — sustainability is the question.
COST generates stronger free cash flow (2.5B), providing more financial flexibility.
Bottom Line
COST scores higher overall (55/100 vs 55/100) and 11.1% 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 →Altria Group
CONSUMER DEFENSIVE · TOBACCO · USA
Altria Group, Inc. (previously known as Philip Morris Companies, Inc.) is an American corporation and one of the world's largest producers and marketers of tobacco, cigarettes and related products. It operates worldwide and is headquartered in unincorporated Henrico County, Virginia, just outside the city of Richmond.
Visit Website →Compare with Other DISCOUNT STORES Stocks
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