Costco Wholesale Corp (COST)vsSprouts Farmers Market LLC (SFM)
COST
Costco Wholesale Corp
$1,012.28
+1.77%
CONSUMER DEFENSIVE · Cap: $448.57B
SFM
Sprouts Farmers Market LLC
$49.70
+3.54%
CONSUMER DEFENSIVE · Cap: $6.01B
Smart Verdict
WallStSmart Research — data-driven comparison
Costco Wholesale Corp generates 3267% more annual revenue ($303.15B vs $9.00B). SFM leads profitability with a 5.6% profit margin vs 3.0%. SFM appears more attractively valued with a PEG of 1.42. SFM earns a higher WallStSmart Score of 58/100 (C).
COST
Buy55
out of 100
Grade: C-
SFM
Buy58
out of 100
Grade: C
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 26 in profit
Conservative balance sheet, low leverage
Generating 2.5B in free cash flow
Every $100 of equity generates 35 in profit
Safe zone — low bankruptcy risk
Attractively priced relative to earnings
Areas to Watch
Trading at 12.5x book value
3.0% margin — thin
Operating margin of 3.8%
Expensive relative to growth rate
4.7% revenue growth
1.5% earnings growth
5.6% margin — thin
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. Revenue growth of 11.1% demonstrates continued momentum.
Bull Case : SFM
The strongest argument for SFM centers on Return on Equity, Altman Z-Score, P/E Ratio. PEG of 1.42 suggests the stock is reasonably priced for its growth.
Bear Case : COST
The primary concerns for COST are Price/Book, Profit Margin, Operating Margin. A P/E of 48.8x leaves little room for execution misses. Thin 3.0% margins leave little buffer for downturns.
Bear Case : SFM
The primary concerns for SFM are Revenue Growth, EPS Growth, Profit Margin.
Key Dynamics to Monitor
COST carries more volatility with a beta of 0.87 — expect wider price swings.
COST is growing revenue faster at 11.1% — sustainability is the question.
COST generates stronger free cash flow (2.5B), providing more financial flexibility.
Monitor DISCOUNT STORES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
SFM scores higher overall (58/100 vs 55/100). 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 →Sprouts Farmers Market LLC
CONSUMER DEFENSIVE · GROCERY STORES · USA
Sprouts Farmers Market, Inc. offers fresh, natural and organic food products in the United States. The company is headquartered in Phoenix, Arizona.
Visit Website →Compare with Other DISCOUNT STORES Stocks
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