Costco Wholesale Corp (COST)vsBanco Santander SA ADR (SAN)
COST
Costco Wholesale Corp
$974.86
+0.11%
CONSUMER DEFENSIVE · Cap: $432.25B
SAN
Banco Santander SA ADR
$10.90
-2.24%
FINANCIAL SERVICES · Cap: $163.16B
Smart Verdict
WallStSmart Research — data-driven comparison
Costco Wholesale Corp generates 511% more annual revenue ($286.27B vs $46.84B). SAN leads profitability with a 30.1% profit margin vs 3.0%. SAN appears more attractively valued with a PEG of 2.53. SAN earns a higher WallStSmart Score of 63/100 (C+).
COST
Buy53
out of 100
Grade: C-
SAN
Buy63
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
+72.4%
Fair Value
$45.40
Current Price
$10.90
$34.50 discount
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
Attractively priced relative to earnings
Reasonable price relative to book value
Keeps 30 of every $100 in revenue as profit
Strong operational efficiency at 43.7%
Large-cap with strong market position
Earnings expanding 25.3% YoY
Areas to Watch
Trading at 13.5x book value
3.0% margin — thin
Operating margin of 3.7%
Expensive relative to growth rate
Expensive relative to growth rate
Revenue declined 6.4%
Distress zone — elevated risk
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : COST
The strongest argument for COST centers on Market Cap, Altman Z-Score, Return on Equity.
Bull Case : SAN
The strongest argument for SAN centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 30.1% and operating margin at 43.7%.
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 : SAN
The primary concerns for SAN are PEG Ratio, Revenue Growth, Altman Z-Score. Debt-to-equity of 4.47 is elevated, increasing financial risk.
Key Dynamics to Monitor
COST profiles as a value stock while SAN is a declining 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.
Monitor DISCOUNT STORES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
SAN scores higher overall (63/100 vs 53/100), backed by strong 30.1% 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 →Banco Santander SA ADR
FINANCIAL SERVICES · BANKS - DIVERSIFIED · USA
Banco Santander, SA, offers various commercial and retail banking products and services to individuals, small and medium-sized companies and large companies worldwide. The company is headquartered in Madrid, Spain.
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