Costco Wholesale Corp (COST)vsConstellation Brands Inc Class A (STZ)
COST
Costco Wholesale Corp
$982.73
-0.95%
CONSUMER DEFENSIVE · Cap: $438.30B
STZ
Constellation Brands Inc Class A
$129.80
-0.64%
CONSUMER DEFENSIVE · Cap: $22.23B
Smart Verdict
WallStSmart Research — data-driven comparison
Costco Wholesale Corp generates 3192% more annual revenue ($303.15B vs $9.21B). STZ leads profitability with a 20.9% profit margin vs 3.0%. STZ appears more attractively valued with a PEG of 1.50. STZ earns a higher WallStSmart Score of 78/100 (B+).
COST
Buy55
out of 100
Grade: C-
STZ
Strong Buy78
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 26 in profit
Conservative balance sheet, low leverage
Generating 2.5B in free cash flow
Attractively priced relative to earnings
Strong operational efficiency at 33.6%
Every $100 of equity generates 22 in profit
Keeps 21 of every $100 in revenue as profit
Reasonable price relative to book value
Earnings expanding 25.3% YoY
Areas to Watch
Trading at 12.2x book value
3.0% margin — thin
Operating margin of 3.8%
Expensive relative to growth rate
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 11.1% demonstrates continued momentum.
Bull Case : STZ
The strongest argument for STZ centers on P/E Ratio, Operating Margin, Return on Equity. Profitability is solid with margins at 20.9% and operating margin at 33.6%.
Bear Case : COST
The primary concerns for COST are Price/Book, Profit Margin, Operating Margin. A P/E of 47.6x leaves little room for execution misses. Thin 3.0% margins leave little buffer for downturns.
Bear Case : STZ
The primary concerns for STZ are Debt/Equity.
Key Dynamics to Monitor
COST profiles as a value stock while STZ is a mature play — different risk/reward profiles.
COST carries more volatility with a beta of 0.87 — expect wider price swings.
COST is growing revenue faster at 11.1% — sustainability is the question.
COST generates stronger free cash flow (2.5B), providing more financial flexibility.
Bottom Line
STZ scores higher overall (78/100 vs 55/100), backed by strong 20.9% 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 →Constellation Brands Inc Class A
CONSUMER DEFENSIVE · BEVERAGES - BREWERS · USA
Constellation Brands, Inc., headquartered in Victor, New York, is an American producer and marketer of beer, wine, and spirits.
Visit Website →Compare with Other DISCOUNT STORES Stocks
Want to dig deeper into these stocks?