Costco Wholesale Corp (COST)vsProgressive Corp (PGR)
COST
Costco Wholesale Corp
$974.86
+0.11%
CONSUMER DEFENSIVE · Cap: $432.25B
PGR
Progressive Corp
$202.84
-1.63%
FINANCIAL SERVICES · Cap: $120.67B
Smart Verdict
WallStSmart Research — data-driven comparison
Costco Wholesale Corp generates 227% more annual revenue ($286.27B vs $87.64B). PGR leads profitability with a 12.9% profit margin vs 3.0%. COST appears more attractively valued with a PEG of 5.41. PGR earns a higher WallStSmart Score of 67/100 (B-).
COST
Buy53
out of 100
Grade: C-
PGR
Strong Buy67
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
+76.9%
Fair Value
$900.43
Current Price
$202.84
$697.59 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 30 in profit
Conservative balance sheet, low leverage
Generating 1.7B in free cash flow
Attractively priced relative to earnings
Every $100 of equity generates 41 in profit
Large-cap with strong market position
Earnings expanding 25.2% YoY
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
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : COST
The strongest argument for COST centers on Market Cap, Altman Z-Score, Return on Equity.
Bull Case : PGR
The strongest argument for PGR centers on P/E Ratio, Return on Equity, Market Cap. Revenue growth of 12.2% 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 : PGR
The primary concerns for PGR are PEG Ratio.
Key Dynamics to Monitor
COST carries more volatility with a beta of 0.99 — expect wider price swings.
PGR is growing revenue faster at 12.2% — sustainability is the question.
PGR generates stronger free cash flow (3.0B), providing more financial flexibility.
Monitor DISCOUNT STORES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
PGR scores higher overall (67/100 vs 53/100) and 12.2% 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 →Progressive Corp
FINANCIAL SERVICES · INSURANCE - PROPERTY & CASUALTY · USA
The Progressive Corporation is an American insurance company, one of the largest providers of car insurance in the United States. The company insures motorcycles, boats, RVs, and commercial vehicles and provides home insurance through select companies.
Visit Website →Compare with Other DISCOUNT STORES Stocks
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