Costco Wholesale Corp (COST)vsRaytheon Technologies Corp (RTX)
COST
Costco Wholesale Corp
$974.86
+0.11%
CONSUMER DEFENSIVE · Cap: $432.25B
RTX
Raytheon Technologies Corp
$195.00
+0.52%
INDUSTRIALS · Cap: $261.12B
Smart Verdict
WallStSmart Research — data-driven comparison
Costco Wholesale Corp generates 223% more annual revenue ($286.27B vs $88.60B). RTX leads profitability with a 7.6% profit margin vs 3.0%. RTX appears more attractively valued with a PEG of 2.78. RTX earns a higher WallStSmart Score of 55/100 (C-).
COST
Buy53
out of 100
Grade: C-
RTX
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
-95.4%
Fair Value
$99.80
Current Price
$195.00
$95.20 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
Mega-cap, among the largest globally
Generating 3.2B 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
Premium valuation, high expectations priced in
Distress zone — elevated risk
7.6% margin — thin
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 : RTX
The strongest argument for RTX centers on Market Cap, Free Cash Flow. Revenue growth of 12.1% 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 : RTX
The primary concerns for RTX are P/E Ratio, Altman Z-Score, Profit Margin.
Key Dynamics to Monitor
COST carries more volatility with a beta of 0.99 — expect wider price swings.
RTX is growing revenue faster at 12.1% — sustainability is the question.
RTX generates stronger free cash flow (3.2B), providing more financial flexibility.
Monitor DISCOUNT STORES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
RTX scores higher overall (55/100 vs 53/100) and 12.1% 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 →Raytheon Technologies Corp
INDUSTRIALS · AEROSPACE & DEFENSE · USA
Raytheon Technologies Corporation is an American multinational aerospace and defense conglomerate headquartered in Waltham, Massachusetts. It is one of the largest aerospace, intelligence services providers, and defense manufacturers in the world by revenue and market capitalization. Raytheon Technologies (RTX) researches, develops, and manufactures advanced technology products in the aerospace and defense industry, including aircraft engines, avionics, aerostructures, cybersecurity, guided missiles, air defense systems, satellites, and drones.
Visit Website →Compare with Other DISCOUNT STORES Stocks
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