WallStSmart

Costco Wholesale Corp (COST)vsMitsubishi UFJ Financial Group Inc ADR (MUFG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Mitsubishi UFJ Financial Group Inc ADR generates 1943% more annual revenue ($5.85T vs $286.27B). MUFG leads profitability with a 22.8% profit margin vs 3.0%. MUFG appears more attractively valued with a PEG of 1.24. MUFG earns a higher WallStSmart Score of 72/100 (B).

COST

Buy

53

out of 100

Grade: C-

Growth: 6.0Profit: 6.5Value: 2.0Quality: 7.5
Piotroski: 4/9Altman Z: 4.84

MUFG

Strong Buy

72

out of 100

Grade: B

Growth: 7.3Profit: 6.5Value: 8.7Quality: 4.3
Piotroski: 7/9Altman Z: -0.34
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

COSTSignificantly Overvalued (-74.7%)

Margin of Safety

-74.7%

Fair Value

$558.15

Current Price

$974.86

$416.71 premium

UndervaluedFair: $558.15Overvalued
MUFGUndervalued (+14.8%)

Margin of Safety

+14.8%

Fair Value

$21.96

Current Price

$16.96

$5.00 discount

UndervaluedFair: $21.96Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

COST5 strengths · Avg: 9.2/10
Market CapQuality
$432.25B10/10

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

Free Cash FlowQuality
$1.71B8/10

Generating 1.7B in free cash flow

MUFG5 strengths · Avg: 9.2/10
Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Operating MarginProfitability
34.8%10/10

Strong operational efficiency at 34.8%

Market CapQuality
$188.05B9/10

Large-cap with strong market position

Profit MarginProfitability
22.8%9/10

Keeps 23 of every $100 in revenue as profit

P/E RatioValuation
15.7x8/10

Attractively priced relative to earnings

Areas to Watch

COST4 concerns · Avg: 3.0/10
Price/BookValuation
13.5x4/10

Trading at 13.5x book value

Profit MarginProfitability
3.0%3/10

3.0% margin — thin

Operating MarginProfitability
3.7%3/10

Operating margin of 3.7%

PEG RatioValuation
5.412/10

Expensive relative to growth rate

MUFG3 concerns · Avg: 2.0/10
Return on EquityProfitability
6.1%3/10

ROE of 6.1% — below average capital efficiency

Altman Z-ScoreHealth
-0.342/10

Distress zone — elevated risk

Debt/EquityHealth
3.771/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : COST

The strongest argument for COST centers on Market Cap, Altman Z-Score, Return on Equity.

Bull Case : MUFG

The strongest argument for MUFG centers on Price/Book, Operating Margin, Market Cap. Profitability is solid with margins at 22.8% and operating margin at 34.8%. Revenue growth of 11.7% demonstrates continued momentum.

Bear Case : COST

The primary concerns for COST are Price/Book, Profit Margin, Operating Margin. A P/E of 50.7x leaves little room for execution misses. Thin 3.0% margins leave little buffer for downturns.

Bear Case : MUFG

The primary concerns for MUFG are Return on Equity, Altman Z-Score, Debt/Equity. Debt-to-equity of 3.77 is elevated, increasing financial risk.

Key Dynamics to Monitor

COST profiles as a value stock while MUFG is a mature play — different risk/reward profiles.

COST carries more volatility with a beta of 0.99 — expect wider price swings.

MUFG is growing revenue faster at 11.7% — sustainability is the question.

Monitor DISCOUNT STORES industry trends, competitive dynamics, and regulatory changes.

Bottom Line

MUFG scores higher overall (72/100 vs 53/100), backed by strong 22.8% margins and 11.7% 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.

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Mitsubishi UFJ Financial Group Inc ADR

FINANCIAL SERVICES · BANKS - DIVERSIFIED · USA

Mitsubishi UFJ Financial Group, Inc., a banking holding company, offers financial services in Japan, the United States, and Asia / Oceania. The company is headquartered in Tokyo, Japan.

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