Costco Wholesale Corp (COST)vsCompanhia de Saneamento Basico do Estado de Sao Paulo SABESP ADR (SBS)
COST
Costco Wholesale Corp
$995.75
-2.03%
CONSUMER DEFENSIVE · Cap: $448.84B
SBS
Companhia de Saneamento Basico do Estado de Sao Paulo SABESP ADR
$33.29
-1.01%
UTILITIES · Cap: $118.61B
Smart Verdict
WallStSmart Research — data-driven comparison
Costco Wholesale Corp generates 652% more annual revenue ($286.27B vs $38.09B). SBS leads profitability with a 22.2% profit margin vs 3.0%. SBS appears more attractively valued with a PEG of 0.47. SBS earns a higher WallStSmart Score of 77/100 (B+).
COST
Buy61
out of 100
Grade: C+
SBS
Strong Buy77
out of 100
Grade: B+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-89.9%
Fair Value
$535.26
Current Price
$995.75
$460.49 premium
Margin of Safety
-3.2%
Fair Value
$28.67
Current Price
$33.29
$4.62 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
Revenue surging 21.5% year-over-year
Earnings expanding 45.5% YoY
Growing faster than its price suggests
Strong operational efficiency at 34.6%
Revenue surging 43.9% year-over-year
Earnings expanding 87.2% YoY
Large-cap with strong market position
Every $100 of equity generates 21 in profit
Areas to Watch
3.0% margin — thin
Operating margin of 3.7%
Expensive relative to growth rate
Premium valuation, high expectations priced in
Grey zone — moderate risk
Weak financial health signals
Premium valuation, high expectations priced in
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull 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 : SBS
The strongest argument for SBS centers on PEG Ratio, Operating Margin, Revenue Growth. Profitability is solid with margins at 22.2% and operating margin at 34.6%. Revenue growth of 43.9% demonstrates continued momentum.
Bear Case : COST
The primary concerns for COST are Profit Margin, Operating Margin, PEG Ratio. A P/E of 52.6x leaves little room for execution misses. Thin 3.0% margins leave little buffer for downturns.
Bear Case : SBS
The primary concerns for SBS are Altman Z-Score, Piotroski F-Score, P/E Ratio. A P/E of 67.2x leaves little room for execution misses.
Key Dynamics to Monitor
COST carries more volatility with a beta of 0.98 — expect wider price swings.
SBS is growing revenue faster at 43.9% — sustainability is the question.
COST generates stronger free cash flow (1.7B), providing more financial flexibility.
Monitor DISCOUNT STORES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
SBS scores higher overall (77/100 vs 61/100), backed by strong 22.2% margins and 43.9% revenue growth. Both earn "Strong 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 →Companhia de Saneamento Basico do Estado de Sao Paulo SABESP ADR
UTILITIES · UTILITIES - REGULATED WATER · USA
Companhia de Saneamento Basico do Estado de So Paulo - SABESP provides water and sewerage services to residential, commercial, industrial and government clients. The company is headquartered in So Paulo, Brazil.
Compare with Other DISCOUNT STORES Stocks
Want to dig deeper into these stocks?