Costco Wholesale Corp (COST)vsPrologis Inc (PLD)
COST
Costco Wholesale Corp
$974.86
+0.11%
CONSUMER DEFENSIVE · Cap: $432.25B
PLD
Prologis Inc
$130.36
+0.01%
REAL ESTATE · Cap: $121.52B
Smart Verdict
WallStSmart Research — data-driven comparison
Costco Wholesale Corp generates 3014% more annual revenue ($286.27B vs $9.19B). PLD leads profitability with a 36.2% profit margin vs 3.0%. COST appears more attractively valued with a PEG of 5.41. PLD earns a higher WallStSmart Score of 55/100 (C).
COST
Buy53
out of 100
Grade: C-
PLD
Buy55
out of 100
Grade: C
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
-116.9%
Fair Value
$60.09
Current Price
$130.36
$70.27 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 36 of every $100 in revenue as profit
Strong operational efficiency at 41.3%
Large-cap with strong market position
Reasonable price relative to book value
Areas to Watch
Trading at 13.5x book value
3.0% margin — thin
Operating margin of 3.7%
Expensive relative to growth rate
Premium valuation, high expectations priced in
4.0% revenue growth
ROE of 6.1% — below average capital efficiency
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 : PLD
The strongest argument for PLD centers on Profit Margin, Operating Margin, Market Cap. Profitability is solid with margins at 36.2% and operating margin at 41.3%.
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 : PLD
The primary concerns for PLD are P/E Ratio, Revenue Growth, Return on Equity.
Key Dynamics to Monitor
PLD carries more volatility with a beta of 1.42 — expect wider price swings.
COST is growing revenue faster at 9.2% — sustainability is the question.
COST generates stronger free cash flow (1.7B), providing more financial flexibility.
Monitor DISCOUNT STORES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
PLD scores higher overall (55/100 vs 53/100), backed by strong 36.2% margins. 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.
Visit Website →Prologis Inc
REAL ESTATE · REIT - INDUSTRIAL · USA
Prologis, Inc. is a real estate investment trust headquartered in San Francisco, California that invests in logistics facilities, with a focus on the consumption side of the global supply chain.
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