WallStSmart

Costco Wholesale Corp (COST)vsRaytech Holding Limited Ordinary Shares (RAY)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Costco Wholesale Corp generates 205740% more annual revenue ($293.59B vs $142.63M). RAY leads profitability with a 11.7% profit margin vs 3.0%. RAY trades at a lower P/E of 3.1x. RAY earns a higher WallStSmart Score of 63/100 (C+).

COST

Buy

61

out of 100

Grade: C+

Growth: 8.0Profit: 6.5Value: 3.7Quality: 6.3
Piotroski: 4/9Altman Z: 4.84

RAY

Buy

63

out of 100

Grade: C+

Growth: 10.0Profit: 6.0Value: 6.7Quality: 7.5
Piotroski: 3/9Altman Z: 2.74

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

COST6 strengths · Avg: 8.8/10
Market CapQuality
$420.35B10/10

Mega-cap, among the largest globally

Altman Z-ScoreHealth
4.8410/10

Safe zone — low bankruptcy risk

Return on EquityProfitability
26.4%9/10

Every $100 of equity generates 26 in profit

Revenue GrowthGrowth
21.5%8/10

Revenue surging 21.5% year-over-year

EPS GrowthGrowth
45.5%8/10

Earnings expanding 45.5% YoY

Free Cash FlowQuality
$2.04B8/10

Generating 2.0B in free cash flow

RAY5 strengths · Avg: 9.4/10
P/E RatioValuation
3.1x10/10

Attractively priced relative to earnings

Price/BookValuation
0.5x10/10

Reasonable price relative to book value

Revenue GrowthGrowth
196.0%10/10

Revenue surging 196.0% year-over-year

Debt/EquityHealth
0.119/10

Conservative balance sheet, low leverage

EPS GrowthGrowth
33.5%8/10

Earnings expanding 33.5% YoY

Areas to Watch

COST4 concerns · Avg: 2.5/10
Profit MarginProfitability
3.0%3/10

3.0% margin — thin

Operating MarginProfitability
3.7%3/10

Operating margin of 3.7%

PEG RatioValuation
4.622/10

Expensive relative to growth rate

P/E RatioValuation
48.1x2/10

Premium valuation, high expectations priced in

RAY3 concerns · Avg: 2.7/10
Market CapQuality
$16.68M3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Free Cash FlowQuality
$-16.14M2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : COST

The strongest argument for COST centers on Market Cap, Altman Z-Score, Return on Equity. Revenue growth of 21.5% demonstrates continued momentum.

Bull Case : RAY

The strongest argument for RAY centers on P/E Ratio, Price/Book, Revenue Growth. Revenue growth of 196.0% demonstrates continued momentum.

Bear Case : COST

The primary concerns for COST are Profit Margin, Operating Margin, PEG Ratio. A P/E of 48.1x leaves little room for execution misses. Thin 3.0% margins leave little buffer for downturns.

Bear Case : RAY

The primary concerns for RAY are Market Cap, Piotroski F-Score, Free Cash Flow.

Key Dynamics to Monitor

COST carries more volatility with a beta of 0.86 — expect wider price swings.

RAY is growing revenue faster at 196.0% — sustainability is the question.

COST generates stronger free cash flow (2.0B), providing more financial flexibility.

Monitor DISCOUNT STORES industry trends, competitive dynamics, and regulatory changes.

Bottom Line

RAY scores higher overall (63/100 vs 61/100) and 196.0% 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.

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Raytech Holding Limited Ordinary Shares

CONSUMER DEFENSIVE · HOUSEHOLD & PERSONAL PRODUCTS · USA

Raytech Holding Limited is an innovative technology firm dedicated to revolutionizing the telecommunications, energy, and smart technology sectors through advanced research and strategic partnerships. With a strong commitment to developing sustainable, cutting-edge solutions, the company enhances operational efficiency and fosters long-term shareholder growth. As it expands its global footprint, Raytech strives to meet the dynamic demands of modern infrastructure, positioning itself as a key player in the evolving technology landscape.

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