Costco Wholesale Corp (COST)vsTurning Point Brands Inc (TPB)
COST
Costco Wholesale Corp
$982.73
-0.95%
CONSUMER DEFENSIVE · Cap: $438.30B
TPB
Turning Point Brands Inc
$67.11
-0.34%
CONSUMER DEFENSIVE · Cap: $1.21B
Smart Verdict
WallStSmart Research — data-driven comparison
Costco Wholesale Corp generates 59667% more annual revenue ($303.15B vs $507.23M). TPB leads profitability with a 8.8% profit margin vs 3.0%. TPB appears more attractively valued with a PEG of 0.05. TPB earns a higher WallStSmart Score of 56/100 (C).
COST
Buy55
out of 100
Grade: C-
TPB
Buy56
out of 100
Grade: C
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
Growing faster than its price suggests
Every $100 of equity generates 23 in profit
Revenue surging 22.6% year-over-year
Areas to Watch
Trading at 12.2x book value
3.0% margin — thin
Operating margin of 3.8%
Expensive relative to growth rate
Moderate valuation
Smaller company, higher risk/reward
Operating margin of 4.2%
Earnings declined 77.2%
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 : TPB
The strongest argument for TPB centers on PEG Ratio, Return on Equity, Revenue Growth. Revenue growth of 22.6% demonstrates continued momentum. PEG of 0.05 suggests the stock is reasonably priced for its growth.
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 : TPB
The primary concerns for TPB are P/E Ratio, Market Cap, Operating Margin.
Key Dynamics to Monitor
COST profiles as a value stock while TPB is a growth play — different risk/reward profiles.
TPB carries more volatility with a beta of 0.97 — expect wider price swings.
TPB is growing revenue faster at 22.6% — sustainability is the question.
COST generates stronger free cash flow (2.5B), providing more financial flexibility.
Bottom Line
TPB scores higher overall (56/100 vs 55/100) and 22.6% revenue growth. 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 →Turning Point Brands Inc
CONSUMER DEFENSIVE · TOBACCO · USA
Turning Point Brands, Inc. manufactures, markets and distributes branded consumer products. The company is headquartered in Louisville, Kentucky.
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