Costco Wholesale Corp (COST)vsSeagate Technology PLC (STX)
COST
Costco Wholesale Corp
$971.87
-1.46%
CONSUMER DEFENSIVE · Cap: $434.37B
STX
Seagate Technology PLC
$925.99
+0.39%
TECHNOLOGY · Cap: $230.51B
Smart Verdict
WallStSmart Research — data-driven comparison
Costco Wholesale Corp generates 2567% more annual revenue ($293.59B vs $11.01B). STX leads profitability with a 21.6% profit margin vs 3.0%. STX appears more attractively valued with a PEG of 0.71. STX earns a higher WallStSmart Score of 77/100 (B+).
COST
Buy61
out of 100
Grade: C+
STX
Strong Buy77
out of 100
Grade: B+
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 27 in profit
Revenue surging 21.5% year-over-year
Earnings expanding 45.5% YoY
Generating 2.0B in free cash flow
Mega-cap, among the largest globally
Every $100 of equity generates 217 in profit
Strong operational efficiency at 35.7%
Revenue surging 44.1% year-over-year
Earnings expanding 108.3% YoY
Keeps 22 of every $100 in revenue as profit
Areas to Watch
3.0% margin — thin
Operating margin of 3.7%
Expensive relative to growth rate
Premium valuation, high expectations priced in
Premium valuation, high expectations priced in
Trading at 189.8x book value
Distress zone — elevated risk
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 21.5% demonstrates continued momentum.
Bull Case : STX
The strongest argument for STX centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 21.6% and operating margin at 35.7%. Revenue growth of 44.1% demonstrates continued momentum.
Bear Case : COST
The primary concerns for COST are Profit Margin, Operating Margin, PEG Ratio. A P/E of 49.3x leaves little room for execution misses. Thin 3.0% margins leave little buffer for downturns.
Bear Case : STX
The primary concerns for STX are P/E Ratio, Price/Book, Altman Z-Score. A P/E of 97.1x leaves little room for execution misses. Debt-to-equity of 3.82 is elevated, increasing financial risk.
Key Dynamics to Monitor
STX carries more volatility with a beta of 2.08 — expect wider price swings.
STX is growing revenue faster at 44.1% — sustainability is the question.
COST generates stronger free cash flow (2.0B), providing more financial flexibility.
Monitor DISCOUNT STORES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
STX scores higher overall (77/100 vs 61/100), backed by strong 21.6% margins and 44.1% revenue growth. 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 →Seagate Technology PLC
TECHNOLOGY · COMPUTER HARDWARE · USA
Seagate Technology Holdings plc, an Irish public limited company (commonly referred to as Seagate) is an American data storage company.
Compare with Other DISCOUNT STORES Stocks
Want to dig deeper into these stocks?