Costco Wholesale Corp (COST)vsRocky Mountain Chocolate Factory (RMCF)
COST
Costco Wholesale Corp
$973.82
+0.11%
CONSUMER DEFENSIVE · Cap: $431.59B
RMCF
Rocky Mountain Chocolate Factory
$2.28
-1.72%
CONSUMER DEFENSIVE · Cap: $12.56M
Smart Verdict
WallStSmart Research — data-driven comparison
Costco Wholesale Corp generates 954499% more annual revenue ($286.27B vs $29.99M). COST leads profitability with a 3.0% profit margin vs -15.8%. COST earns a higher WallStSmart Score of 53/100 (C-).
COST
Buy53
out of 100
Grade: C-
RMCF
Avoid28
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-75.1%
Fair Value
$556.12
Current Price
$973.82
$417.70 premium
Intrinsic value data unavailable for RMCF.
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
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
Smaller company, higher risk/reward
Elevated debt levels
Weak financial health signals
ROE of -56.8% — below average capital efficiency
Comparative Analysis Report
WallStSmart ResearchBull Case : COST
The strongest argument for COST centers on Market Cap, Altman Z-Score, Return on Equity.
Bull Case : RMCF
The strongest argument for RMCF centers on Price/Book.
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 : RMCF
The primary concerns for RMCF are Market Cap, Debt/Equity, Piotroski F-Score. Debt-to-equity of 1.54 is elevated, increasing financial risk.
Key Dynamics to Monitor
COST profiles as a value stock while RMCF is a turnaround play — different risk/reward profiles.
COST carries more volatility with a beta of 0.99 — 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.
Bottom Line
COST scores higher overall (53/100 vs 28/100). Both earn "Buy" and "Avoid" 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 →Rocky Mountain Chocolate Factory
CONSUMER DEFENSIVE · CONFECTIONERS · USA
Rocky Mountain Chocolate Factory, Inc., is a confectionery franchisor, manufacturer and retail operator. The company is headquartered in Durango, Colorado.
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