Costco Wholesale Corp (COST)vsSea Ltd (SE)
COST
Costco Wholesale Corp
$1,008.79
-0.32%
CONSUMER DEFENSIVE · Cap: $449.00B
SE
Sea Ltd
$86.73
-2.15%
CONSUMER CYCLICAL · Cap: $54.29B
Smart Verdict
WallStSmart Research — data-driven comparison
Costco Wholesale Corp generates 1148% more annual revenue ($286.27B vs $22.94B). SE leads profitability with a 6.9% profit margin vs 3.0%. SE appears more attractively valued with a PEG of 0.59. SE earns a higher WallStSmart Score of 70/100 (B-).
COST
Buy61
out of 100
Grade: C+
SE
Strong Buy70
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-87.6%
Fair Value
$537.65
Current Price
$1008.79
$471.14 premium
Margin of Safety
+52.5%
Fair Value
$241.22
Current Price
$86.73
$154.49 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
Revenue surging 21.5% year-over-year
Earnings expanding 45.5% YoY
Revenue surging 38.4% year-over-year
Earnings expanding 58.2% YoY
Large-cap with strong market position
Growing faster than its price suggests
Areas to Watch
3.0% margin — thin
Operating margin of 3.7%
Expensive relative to growth rate
Premium valuation, high expectations priced in
Premium valuation, high expectations priced in
6.9% margin — thin
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 : SE
The strongest argument for SE centers on Revenue Growth, EPS Growth, Market Cap. Revenue growth of 38.4% demonstrates continued momentum. PEG of 0.59 suggests the stock is reasonably priced for its growth.
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 : SE
The primary concerns for SE are P/E Ratio, Profit Margin, Free Cash Flow.
Key Dynamics to Monitor
COST profiles as a growth stock while SE is a hypergrowth play — different risk/reward profiles.
SE carries more volatility with a beta of 1.57 — expect wider price swings.
SE is growing revenue faster at 38.4% — sustainability is the question.
Monitor DISCOUNT STORES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
SE scores higher overall (70/100 vs 61/100) and 38.4% 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 →Sea Ltd
CONSUMER CYCLICAL · INTERNET RETAIL · USA
Sea Limited is engaged in the digital entertainment, e-commerce and digital financial services businesses in Southeast Asia, Latin America, the rest of Asia and internationally. The company is headquartered in Singapore.
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