Costco Wholesale Corp (COST)vsPepsiCo Inc (PEP)
COST
Costco Wholesale Corp
$996.08
+1.36%
CONSUMER DEFENSIVE · Cap: $438.30B
PEP
PepsiCo Inc
$132.63
+0.87%
CONSUMER DEFENSIVE · Cap: $179.19B
Smart Verdict
WallStSmart Research — data-driven comparison
Costco Wholesale Corp generates 209% more annual revenue ($303.15B vs $98.24B). PEP leads profitability with a 11.1% profit margin vs 3.0%. PEP appears more attractively valued with a PEG of 1.38. PEP earns a higher WallStSmart Score of 67/100 (B-).
COST
Buy55
out of 100
Grade: C-
PEP
Strong Buy67
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for COST.
Margin of Safety
+4.1%
Fair Value
$141.64
Current Price
$132.63
$9.01 discount
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
Every $100 of equity generates 49 in profit
Large-cap with strong market position
Attractively priced relative to earnings
Generating 4.7B in free cash flow
Areas to Watch
Trading at 12.3x book value
3.0% margin — thin
Operating margin of 3.8%
Expensive relative to growth rate
Trading at 8.1x book value
Weak financial health signals
Elevated debt levels
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 : PEP
The strongest argument for PEP centers on Return on Equity, Market Cap, P/E Ratio. PEG of 1.38 suggests the stock is reasonably priced for its growth.
Bear Case : COST
The primary concerns for COST are Price/Book, Profit Margin, Operating Margin. A P/E of 47.6x leaves little room for execution misses. Thin 3.0% margins leave little buffer for downturns.
Bear Case : PEP
The primary concerns for PEP are Price/Book, Piotroski F-Score, Debt/Equity. Debt-to-equity of 2.33 is elevated, increasing financial risk.
Key Dynamics to Monitor
COST carries more volatility with a beta of 0.87 — expect wider price swings.
COST is growing revenue faster at 11.1% — sustainability is the question.
PEP generates stronger free cash flow (4.7B), providing more financial flexibility.
Monitor DISCOUNT STORES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
PEP scores higher overall (67/100 vs 55/100). 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 →PepsiCo Inc
CONSUMER DEFENSIVE · BEVERAGES - NON-ALCOHOLIC · USA
PepsiCo, Inc. is an American based multinational food, snack, and beverage corporation headquartered in Harrison, New York, in the hamlet of Purchase. PepsiCo's business encompasses all aspects of the food and beverage market. It oversees the manufacturing, distribution, and marketing of its products.
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