Costco Wholesale Corp (COST)vsTC Energy Corp (TRP)
COST
Costco Wholesale Corp
$1,008.79
-0.32%
CONSUMER DEFENSIVE · Cap: $449.00B
TRP
TC Energy Corp
$64.75
-0.54%
ENERGY · Cap: $67.82B
Smart Verdict
WallStSmart Research — data-driven comparison
Costco Wholesale Corp generates 1750% more annual revenue ($286.27B vs $15.48B). TRP leads profitability with a 22.2% profit margin vs 3.0%. TRP appears more attractively valued with a PEG of 3.37. COST earns a higher WallStSmart Score of 61/100 (C+).
COST
Buy61
out of 100
Grade: C+
TRP
Buy55
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-87.6%
Fair Value
$537.65
Current Price
$1008.79
$471.14 premium
Margin of Safety
-33.9%
Fair Value
$45.51
Current Price
$64.75
$19.24 premium
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
Revenue surging 21.5% year-over-year
Earnings expanding 45.5% YoY
Strong operational efficiency at 47.5%
Large-cap with strong market position
Keeps 22 of every $100 in revenue as profit
Generating 1.1B in free cash flow
Areas to Watch
3.0% margin — thin
Operating margin of 3.7%
Expensive relative to growth rate
Premium valuation, high expectations priced in
Moderate valuation
Expensive relative to growth rate
Earnings declined 8.5%
Distress zone — elevated risk
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 : TRP
The strongest argument for TRP centers on Operating Margin, Market Cap, Profit Margin. Profitability is solid with margins at 22.2% and operating margin at 47.5%.
Bear Case : COST
The primary concerns for COST are Profit Margin, Operating Margin, PEG Ratio. A P/E of 52.6x leaves little room for execution misses. Thin 3.0% margins leave little buffer for downturns.
Bear Case : TRP
The primary concerns for TRP are P/E Ratio, PEG Ratio, EPS Growth. Debt-to-equity of 2.23 is elevated, increasing financial risk.
Key Dynamics to Monitor
COST profiles as a growth stock while TRP is a mature play — different risk/reward profiles.
TRP carries more volatility with a beta of 0.97 — expect wider price swings.
COST is growing revenue faster at 21.5% — sustainability is the question.
COST generates stronger free cash flow (1.7B), providing more financial flexibility.
Bottom Line
COST scores higher overall (61/100 vs 55/100) and 21.5% 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 →TC Energy Corp
ENERGY · OIL & GAS MIDSTREAM · USA
TC Energy Corporation is an energy infrastructure company in North America. The company is headquartered in Calgary, Canada.
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