Costco Wholesale Corp (COST)vsOmnicom Group Inc (OMC)
COST
Costco Wholesale Corp
$974.86
+0.11%
CONSUMER DEFENSIVE · Cap: $432.25B
OMC
Omnicom Group Inc
$75.74
+0.46%
COMMUNICATION SERVICES · Cap: $23.72B
Smart Verdict
WallStSmart Research — data-driven comparison
Costco Wholesale Corp generates 1557% more annual revenue ($286.27B vs $17.27B). COST leads profitability with a 3.0% profit margin vs -0.3%. COST appears more attractively valued with a PEG of 5.41. COST earns a higher WallStSmart Score of 53/100 (C-).
COST
Buy53
out of 100
Grade: C-
OMC
Hold49
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-74.7%
Fair Value
$558.15
Current Price
$974.86
$416.71 premium
Intrinsic value data unavailable for OMC.
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
Reasonable price relative to book value
Revenue surging 27.9% year-over-year
Generating 3.0B in free cash flow
Areas to Watch
Trading at 13.5x book value
3.0% margin — thin
Operating margin of 3.7%
Expensive relative to growth rate
ROE of 0.5% — below average capital efficiency
Weak financial health signals
Expensive relative to growth rate
Earnings declined 10.3%
Comparative Analysis Report
WallStSmart ResearchBull Case : COST
The strongest argument for COST centers on Market Cap, Altman Z-Score, Return on Equity.
Bull Case : OMC
The strongest argument for OMC centers on Price/Book, Revenue Growth, Free Cash Flow. Revenue growth of 27.9% 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 : OMC
The primary concerns for OMC are Return on Equity, Piotroski F-Score, PEG Ratio.
Key Dynamics to Monitor
COST profiles as a value stock while OMC is a growth play — different risk/reward profiles.
COST carries more volatility with a beta of 0.99 — expect wider price swings.
OMC is growing revenue faster at 27.9% — sustainability is the question.
OMC generates stronger free cash flow (3.0B), providing more financial flexibility.
Bottom Line
COST scores higher overall (53/100 vs 49/100). Both earn "Buy" and "Hold" 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 →Omnicom Group Inc
COMMUNICATION SERVICES · ADVERTISING AGENCIES · USA
Omnicom Group Inc. is an American global media, marketing and corporate communications holding company, headquartered in New York City.
Visit Website →Compare with Other DISCOUNT STORES Stocks
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