Costco Wholesale Corp (COST)vsCharles Schwab Corp (SCHW)
COST
Costco Wholesale Corp
$974.86
+0.11%
CONSUMER DEFENSIVE · Cap: $432.25B
SCHW
Charles Schwab Corp
$95.68
-0.72%
FINANCIAL SERVICES · Cap: $169.34B
Smart Verdict
WallStSmart Research — data-driven comparison
Costco Wholesale Corp generates 1097% more annual revenue ($286.27B vs $23.92B). SCHW leads profitability with a 37.0% profit margin vs 3.0%. SCHW appears more attractively valued with a PEG of 1.12. SCHW earns a higher WallStSmart Score of 75/100 (B+).
COST
Buy53
out of 100
Grade: C-
SCHW
Strong Buy75
out of 100
Grade: B+
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
+56.0%
Fair Value
$217.62
Current Price
$95.68
$121.94 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
Keeps 37 of every $100 in revenue as profit
Strong operational efficiency at 49.7%
Conservative balance sheet, low leverage
Large-cap with strong market position
18.9% revenue growth
Earnings expanding 41.1% YoY
Areas to Watch
Trading at 13.5x book value
3.0% margin — thin
Operating margin of 3.7%
Expensive relative to growth rate
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.
Bull Case : SCHW
The strongest argument for SCHW centers on Profit Margin, Operating Margin, Debt/Equity. Profitability is solid with margins at 37.0% and operating margin at 49.7%. Revenue growth of 18.9% 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 : SCHW
The primary concerns for SCHW are Free Cash Flow.
Key Dynamics to Monitor
COST profiles as a value stock while SCHW is a growth play — different risk/reward profiles.
COST carries more volatility with a beta of 0.99 — expect wider price swings.
SCHW is growing revenue faster at 18.9% — sustainability is the question.
COST generates stronger free cash flow (1.7B), providing more financial flexibility.
Bottom Line
SCHW scores higher overall (75/100 vs 53/100), backed by strong 37.0% margins and 18.9% 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 →Charles Schwab Corp
FINANCIAL SERVICES · CAPITAL MARKETS · USA
The Charles Schwab Corporation is an American multinational financial services company. It offers banking, commercial banking, an electronic trading platform, and wealth management advisory services to both retail and institutional clients.
Visit Website →Compare with Other DISCOUNT STORES Stocks
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