Costco Wholesale Corp (COST)vsPure Storage Inc (PSTG)
COST
Costco Wholesale Corp
$972.33
-0.25%
CONSUMER DEFENSIVE · Cap: $431.59B
PSTG
Pure Storage Inc
$62.63
-4.31%
TECHNOLOGY · Cap: $20.68B
Smart Verdict
WallStSmart Research — data-driven comparison
Costco Wholesale Corp generates 7715% more annual revenue ($286.27B vs $3.66B). PSTG leads profitability with a 5.1% profit margin vs 3.0%. PSTG appears more attractively valued with a PEG of 1.47. PSTG earns a higher WallStSmart Score of 59/100 (C).
COST
Buy53
out of 100
Grade: C-
PSTG
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-74.8%
Fair Value
$556.12
Current Price
$972.33
$416.21 premium
Margin of Safety
-195.4%
Fair Value
$25.74
Current Price
$62.63
$36.89 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
Earnings expanding 140.6% YoY
Revenue surging 20.4% year-over-year
Areas to Watch
Trading at 13.4x book value
3.0% margin — thin
Operating margin of 3.7%
Expensive relative to growth rate
Trading at 14.3x book value
5.1% margin — thin
Premium valuation, high expectations priced in
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : COST
The strongest argument for COST centers on Market Cap, Altman Z-Score, Return on Equity.
Bull Case : PSTG
The strongest argument for PSTG centers on EPS Growth, Revenue Growth. Revenue growth of 20.4% demonstrates continued momentum. PEG of 1.47 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 50.8x leaves little room for execution misses. Thin 3.0% margins leave little buffer for downturns.
Bear Case : PSTG
The primary concerns for PSTG are Price/Book, Profit Margin, P/E Ratio. A P/E of 113.9x leaves little room for execution misses.
Key Dynamics to Monitor
COST profiles as a value stock while PSTG is a growth play — different risk/reward profiles.
PSTG carries more volatility with a beta of 1.33 — expect wider price swings.
PSTG is growing revenue faster at 20.4% — sustainability is the question.
COST generates stronger free cash flow (1.7B), providing more financial flexibility.
Bottom Line
PSTG scores higher overall (59/100 vs 53/100) and 20.4% 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.
Visit Website →Pure Storage Inc
TECHNOLOGY · COMPUTER HARDWARE · USA
Pure Storage, Inc. provides data storage technology and solutions in the United States and internationally. The company is headquartered in Mountain View, California.
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