Costco Wholesale Corp (COST)vsSynopsys Inc (SNPS)
COST
Costco Wholesale Corp
$974.86
+0.11%
CONSUMER DEFENSIVE · Cap: $432.25B
SNPS
Synopsys Inc
$410.13
-1.32%
TECHNOLOGY · Cap: $78.57B
Smart Verdict
WallStSmart Research — data-driven comparison
Costco Wholesale Corp generates 3475% more annual revenue ($286.27B vs $8.01B). SNPS leads profitability with a 13.8% profit margin vs 3.0%. SNPS appears more attractively valued with a PEG of 2.77. COST earns a higher WallStSmart Score of 53/100 (C-).
COST
Buy53
out of 100
Grade: C-
SNPS
Buy51
out of 100
Grade: C-
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
-825.0%
Fair Value
$44.34
Current Price
$410.13
$365.79 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
Generating 1.7B in free cash flow
Revenue surging 65.5% year-over-year
Large-cap with strong market position
Reasonable price relative to book value
Areas to Watch
Trading at 13.5x book value
3.0% margin — thin
Operating margin of 3.7%
Expensive relative to growth rate
ROE of 5.5% — below average capital efficiency
Weak financial health signals
Expensive relative to growth rate
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : COST
The strongest argument for COST centers on Market Cap, Altman Z-Score, Return on Equity.
Bull Case : SNPS
The strongest argument for SNPS centers on Revenue Growth, Market Cap, Price/Book. Revenue growth of 65.5% 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 : SNPS
The primary concerns for SNPS are Return on Equity, Piotroski F-Score, PEG Ratio. A P/E of 62.9x leaves little room for execution misses.
Key Dynamics to Monitor
COST profiles as a value stock while SNPS is a growth play — different risk/reward profiles.
SNPS carries more volatility with a beta of 1.16 — expect wider price swings.
SNPS is growing revenue faster at 65.5% — sustainability is the question.
COST generates stronger free cash flow (1.7B), providing more financial flexibility.
Bottom Line
COST scores higher overall (53/100 vs 51/100). 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 →Synopsys Inc
TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA
Synopsys is an American electronic design automation company that focuses on silicon design and verification, silicon intellectual property and software security and quality. Products include logic synthesis, behavioral synthesis, place and route, static timing analysis, formal verification, hardware description language (SystemC, SystemVerilog/Verilog, VHDL) simulators, and transistor-level circuit simulation.
Visit Website →Compare with Other DISCOUNT STORES Stocks
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