WallStSmart

Costco Wholesale Corp (COST)vsOllie's Bargain Outlet Hldg (OLLI)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Costco Wholesale Corp generates 10706% more annual revenue ($286.27B vs $2.65B). OLLI leads profitability with a 9.1% profit margin vs 3.0%. OLLI appears more attractively valued with a PEG of 2.08. OLLI earns a higher WallStSmart Score of 56/100 (C).

COST

Buy

53

out of 100

Grade: C-

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

OLLI

Buy

56

out of 100

Grade: C

Growth: 8.0Profit: 6.0Value: 10.0Quality: 7.3
Piotroski: 5/9Altman Z: 3.70
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

COSTSignificantly Overvalued (-74.5%)

Margin of Safety

-74.5%

Fair Value

$558.44

Current Price

$972.33

$413.89 premium

UndervaluedFair: $558.44Overvalued
OLLIUndervalued (+37.5%)

Margin of Safety

+37.5%

Fair Value

$182.05

Current Price

$98.96

$83.09 discount

UndervaluedFair: $182.05Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

COST5 strengths · Avg: 9.2/10
Market CapQuality
$444.46B10/10

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

OLLI3 strengths · Avg: 8.7/10
Altman Z-ScoreHealth
3.7010/10

Safe zone — low bankruptcy risk

Revenue GrowthGrowth
16.8%8/10

16.8% revenue growth

EPS GrowthGrowth
26.4%8/10

Earnings expanding 26.4% YoY

Areas to Watch

COST4 concerns · Avg: 3.0/10
Price/BookValuation
13.4x4/10

Trading at 13.4x 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
5.582/10

Expensive relative to growth rate

OLLI2 concerns · Avg: 4.0/10
PEG RatioValuation
2.084/10

Expensive relative to growth rate

P/E RatioValuation
27.4x4/10

Moderate valuation

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 : OLLI

The strongest argument for OLLI centers on Altman Z-Score, Revenue Growth, EPS Growth. 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 52.1x leaves little room for execution misses. Thin 3.0% margins leave little buffer for downturns.

Bear Case : OLLI

The primary concerns for OLLI are PEG Ratio, P/E Ratio.

Key Dynamics to Monitor

COST profiles as a value stock while OLLI is a growth play — different risk/reward profiles.

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

OLLI is growing revenue faster at 16.8% — sustainability is the question.

COST generates stronger free cash flow (1.7B), providing more financial flexibility.

Bottom Line

OLLI scores higher overall (56/100 vs 53/100) and 16.8% 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.

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Ollie's Bargain Outlet Hldg

CONSUMER DEFENSIVE · DISCOUNT STORES · USA

Ollie's Bargain Outlet Holdings, Inc. is a branded product retailer. The company is headquartered in Harrisburg, Pennsylvania.

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