Costco Wholesale Corp (COST)vsAT&T Inc (TBB)
COST
Costco Wholesale Corp
$974.86
+0.11%
CONSUMER DEFENSIVE · Cap: $432.25B
TBB
AT&T Inc
$21.58
-0.05%
· Cap: $132.50B
Smart Verdict
WallStSmart Research — data-driven comparison
COST leads profitability with a 3.0% profit margin vs 0.0%. TBB trades at a lower P/E of 4.2x. COST earns a higher WallStSmart Score of 53/100 (C-).
COST
Buy53
out of 100
Grade: C-
TBB
Avoid25
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-74.7%
Fair Value
$558.15
Current Price
$974.86
$416.71 premium
Intrinsic value data unavailable for TBB.
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
Attractively priced relative to earnings
Large-cap with strong market position
Generating 4.5B 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
0.0% revenue growth
0.0% earnings growth
0.0% margin — thin
Operating margin of 0.0%
Comparative Analysis Report
WallStSmart ResearchBull Case : COST
The strongest argument for COST centers on Market Cap, Altman Z-Score, Return on Equity.
Bull Case : TBB
The strongest argument for TBB centers on P/E Ratio, Market Cap, Free Cash Flow.
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 : TBB
The primary concerns for TBB are Revenue Growth, EPS Growth, Profit Margin. Debt-to-equity of 1.57 is elevated, increasing financial risk.
Key Dynamics to Monitor
COST is growing revenue faster at 9.2% — sustainability is the question.
TBB generates stronger free cash flow (4.5B), providing more financial flexibility.
Monitor DISCOUNT STORES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
COST scores higher overall (53/100 vs 25/100). Both earn "Buy" and "Avoid" 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 →AT&T Inc
· · USA
AT&T Inc. provides digital entertainment communications and services. The company is headquartered in Dallas, Texas.
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