Costco Wholesale Corp (COST)vsS&P Global Inc (SPGI)
COST
Costco Wholesale Corp
$974.86
+0.11%
CONSUMER DEFENSIVE · Cap: $432.25B
SPGI
S&P Global Inc
$408.48
-0.66%
FINANCIAL SERVICES · Cap: $124.51B
Smart Verdict
WallStSmart Research — data-driven comparison
Costco Wholesale Corp generates 1767% more annual revenue ($286.27B vs $15.34B). SPGI leads profitability with a 29.1% profit margin vs 3.0%. SPGI appears more attractively valued with a PEG of 1.50. SPGI earns a higher WallStSmart Score of 67/100 (B-).
COST
Buy53
out of 100
Grade: C-
SPGI
Strong Buy67
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
+40.5%
Fair Value
$687.02
Current Price
$408.48
$278.54 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
Strong operational efficiency at 38.3%
Large-cap with strong market position
Keeps 29 of every $100 in revenue as profit
Earnings expanding 32.0% YoY
Generating 1.7B 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
Moderate valuation
Grey zone — moderate risk
Comparative Analysis Report
WallStSmart ResearchBull Case : COST
The strongest argument for COST centers on Market Cap, Altman Z-Score, Return on Equity.
Bull Case : SPGI
The strongest argument for SPGI centers on Operating Margin, Market Cap, Profit Margin. Profitability is solid with margins at 29.1% and operating margin at 38.3%.
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 : SPGI
The primary concerns for SPGI are P/E Ratio, Altman Z-Score.
Key Dynamics to Monitor
COST profiles as a value stock while SPGI is a mature play — different risk/reward profiles.
SPGI carries more volatility with a beta of 1.22 — expect wider price swings.
COST is growing revenue faster at 9.2% — sustainability is the question.
COST generates stronger free cash flow (1.7B), providing more financial flexibility.
Bottom Line
SPGI scores higher overall (67/100 vs 53/100), backed by strong 29.1% margins. 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 →S&P Global Inc
FINANCIAL SERVICES · FINANCIAL DATA & STOCK EXCHANGES · USA
S&P Global Inc. is an American publicly traded corporation headquartered in Manhattan, New York City. Its primary areas of business are financial information and analytics.
Visit Website →Compare with Other DISCOUNT STORES Stocks
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