Costco Wholesale Corp (COST)vsNewmont Goldcorp Corp (NEM)
COST
Costco Wholesale Corp
$974.86
+0.11%
CONSUMER DEFENSIVE · Cap: $432.25B
NEM
Newmont Goldcorp Corp
$101.52
+2.52%
BASIC MATERIALS · Cap: $108.06B
Smart Verdict
WallStSmart Research — data-driven comparison
Costco Wholesale Corp generates 1163% more annual revenue ($286.27B vs $22.67B). NEM leads profitability with a 31.2% profit margin vs 3.0%. NEM appears more attractively valued with a PEG of 2.78. NEM earns a higher WallStSmart Score of 65/100 (B-).
COST
Buy53
out of 100
Grade: C-
NEM
Strong Buy65
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-74.7%
Fair Value
$558.15
Current Price
$974.86
$416.71 premium
Margin of Safety
-184.1%
Fair Value
$43.86
Current Price
$101.52
$57.66 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 30 in profit
Conservative balance sheet, low leverage
Generating 1.7B in free cash flow
Keeps 31 of every $100 in revenue as profit
Strong operational efficiency at 58.1%
Conservative balance sheet, low leverage
Large-cap with strong market position
Every $100 of equity generates 22 in profit
Attractively priced relative to earnings
Areas to Watch
Trading at 13.5x book value
3.0% margin — thin
Operating margin of 3.7%
Expensive relative to growth rate
Expensive relative to growth rate
Earnings declined 4.6%
Comparative Analysis Report
WallStSmart ResearchBull Case : COST
The strongest argument for COST centers on Market Cap, Altman Z-Score, Return on Equity.
Bull Case : NEM
The strongest argument for NEM centers on Profit Margin, Operating Margin, Debt/Equity. Profitability is solid with margins at 31.2% and operating margin at 58.1%. Revenue growth of 20.6% 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 : NEM
The primary concerns for NEM are PEG Ratio, EPS Growth.
Key Dynamics to Monitor
COST profiles as a value stock while NEM is a growth play — different risk/reward profiles.
COST carries more volatility with a beta of 0.99 — expect wider price swings.
NEM is growing revenue faster at 20.6% — sustainability is the question.
COST generates stronger free cash flow (1.7B), providing more financial flexibility.
Bottom Line
NEM scores higher overall (65/100 vs 53/100), backed by strong 31.2% margins and 20.6% 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 →Newmont Goldcorp Corp
BASIC MATERIALS · GOLD · USA
Newmont Corporation, based in Greenwood Village, Colorado, United States, is one of the largest gold mining companies in the world.
Visit Website →Compare with Other DISCOUNT STORES Stocks
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