Costco Wholesale Corp (COST)vsBBB Foods Inc. (TBBB)
COST
Costco Wholesale Corp
$996.08
+1.36%
CONSUMER DEFENSIVE · Cap: $438.30B
TBBB
BBB Foods Inc.
$56.61
+0.37%
CONSUMER DEFENSIVE · Cap: $6.95B
Smart Verdict
WallStSmart Research — data-driven comparison
Costco Wholesale Corp generates 233% more annual revenue ($303.15B vs $91.15B). COST leads profitability with a 3.0% profit margin vs -3.7%. COST earns a higher WallStSmart Score of 55/100 (C-).
COST
Buy55
out of 100
Grade: C-
TBBB
Hold49
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for COST.
Margin of Safety
+57.5%
Fair Value
$91.11
Current Price
$56.61
$34.50 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 26 in profit
Conservative balance sheet, low leverage
Generating 2.5B in free cash flow
Revenue surging 38.7% year-over-year
Earnings expanding 249.7% YoY
Generating 1.4B in free cash flow
Areas to Watch
Trading at 12.3x book value
3.0% margin — thin
Operating margin of 3.8%
Expensive relative to growth rate
Distress zone — elevated risk
Operating margin of 1.5%
Weak financial health signals
Trading at 21.0x 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 11.1% demonstrates continued momentum.
Bull Case : TBBB
The strongest argument for TBBB centers on Revenue Growth, EPS Growth, Free Cash Flow. Revenue growth of 38.7% demonstrates continued momentum.
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 : TBBB
The primary concerns for TBBB are Altman Z-Score, Operating Margin, Piotroski F-Score. Debt-to-equity of 2.65 is elevated, increasing financial risk.
Key Dynamics to Monitor
COST profiles as a value stock while TBBB is a hypergrowth play — different risk/reward profiles.
COST carries more volatility with a beta of 0.87 — expect wider price swings.
TBBB is growing revenue faster at 38.7% — sustainability is the question.
COST generates stronger free cash flow (2.5B), providing more financial flexibility.
Bottom Line
COST scores higher overall (55/100 vs 49/100) and 11.1% revenue growth. TBBB offers better value entry with a 57.5% margin of safety. Both earn "Buy" and "Hold" 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 →BBB Foods Inc.
CONSUMER DEFENSIVE · DISCOUNT STORES · USA
BBB Foods Inc., operates grocery retail stores in Mexico. The company is headquartered in Mexico City, Mexico.
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