Costco Wholesale Corp (COST)vsSun Life Financial Inc. (SLF)
COST
Costco Wholesale Corp
$974.86
+0.11%
CONSUMER DEFENSIVE · Cap: $432.25B
SLF
Sun Life Financial Inc.
$62.77
-0.38%
FINANCIAL SERVICES · Cap: $34.88B
Smart Verdict
WallStSmart Research — data-driven comparison
Costco Wholesale Corp generates 721% more annual revenue ($286.27B vs $34.88B). SLF leads profitability with a 10.2% profit margin vs 3.0%. SLF appears more attractively valued with a PEG of 0.88. SLF earns a higher WallStSmart Score of 72/100 (B).
COST
Buy53
out of 100
Grade: C-
SLF
Strong Buy72
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
+69.0%
Fair Value
$209.66
Current Price
$62.77
$146.89 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
Growing faster than its price suggests
Attractively priced relative to earnings
Reasonable price relative to book value
Generating 5.3B in free cash flow
Areas to Watch
Trading at 13.5x book value
3.0% margin — thin
Operating margin of 3.7%
Expensive relative to growth rate
4.7% revenue growth
2.4% earnings growth
Comparative Analysis Report
WallStSmart ResearchBull Case : COST
The strongest argument for COST centers on Market Cap, Altman Z-Score, Return on Equity.
Bull Case : SLF
The strongest argument for SLF centers on PEG Ratio, P/E Ratio, Price/Book. PEG of 0.88 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 50.7x leaves little room for execution misses. Thin 3.0% margins leave little buffer for downturns.
Bear Case : SLF
The primary concerns for SLF are Revenue Growth, EPS Growth.
Key Dynamics to Monitor
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.
SLF generates stronger free cash flow (5.3B), providing more financial flexibility.
Monitor DISCOUNT STORES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
SLF scores higher overall (72/100 vs 53/100). 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 →Sun Life Financial Inc.
FINANCIAL SERVICES · INSURANCE - DIVERSIFIED · USA
Sun Life Financial Inc., a financial services company, provides insurance, wealth and asset management solutions to individuals and corporate clients around the world. The company is headquartered in Toronto, Canada.
Compare with Other DISCOUNT STORES Stocks
Want to dig deeper into these stocks?