Costco Wholesale Corp (COST)vsSpotify Technology SA (SPOT)
COST
Costco Wholesale Corp
$1,008.79
-0.32%
CONSUMER DEFENSIVE · Cap: $449.00B
SPOT
Spotify Technology SA
$417.83
-2.25%
COMMUNICATION SERVICES · Cap: $87.44B
Smart Verdict
WallStSmart Research — data-driven comparison
Costco Wholesale Corp generates 1533% more annual revenue ($286.27B vs $17.53B). SPOT leads profitability with a 15.4% profit margin vs 3.0%. SPOT appears more attractively valued with a PEG of 1.83. SPOT earns a higher WallStSmart Score of 64/100 (C+).
COST
Buy61
out of 100
Grade: C+
SPOT
Buy64
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-89.1%
Fair Value
$535.26
Current Price
$1008.79
$473.53 premium
Margin of Safety
-44.3%
Fair Value
$337.63
Current Price
$417.83
$80.20 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
Revenue surging 21.5% year-over-year
Earnings expanding 45.5% YoY
Every $100 of equity generates 38 in profit
Earnings expanding 222.4% YoY
Large-cap with strong market position
Conservative balance sheet, low leverage
Areas to Watch
3.0% margin — thin
Operating margin of 3.7%
Expensive relative to growth rate
Premium valuation, high expectations priced in
Expensive relative to growth rate
Moderate valuation
Trading at 8.8x book value
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 : SPOT
The strongest argument for SPOT centers on Return on Equity, EPS Growth, Market Cap. Profitability is solid with margins at 15.4% and operating margin at 15.8%.
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 : SPOT
The primary concerns for SPOT are PEG Ratio, P/E Ratio, Price/Book.
Key Dynamics to Monitor
COST profiles as a growth stock while SPOT is a mature play — different risk/reward profiles.
SPOT carries more volatility with a beta of 1.55 — expect wider price swings.
COST is growing revenue faster at 21.5% — sustainability is the question.
COST generates stronger free cash flow (1.7B), providing more financial flexibility.
Bottom Line
SPOT scores higher overall (64/100 vs 61/100), backed by strong 15.4% margins. 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 →Spotify Technology SA
COMMUNICATION SERVICES · INTERNET CONTENT & INFORMATION · USA
Spotify Technology SA, provides audio streaming services worldwide. The company is headquartered in Luxembourg, Luxembourg.
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