Costco Wholesale Corp (COST)vsUnited-Guardian Inc (UG)
COST
Costco Wholesale Corp
$998.67
+1.59%
CONSUMER DEFENSIVE · Cap: $448.60B
UG
United-Guardian Inc
$7.13
+1.28%
CONSUMER DEFENSIVE · Cap: $32.34M
Smart Verdict
WallStSmart Research — data-driven comparison
Costco Wholesale Corp generates 2714470% more annual revenue ($286.27B vs $10.55M). UG leads profitability with a 20.0% profit margin vs 3.0%. UG appears more attractively valued with a PEG of 1.13. UG earns a higher WallStSmart Score of 67/100 (B-).
COST
Buy61
out of 100
Grade: C+
UG
Strong Buy67
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-88.3%
Fair Value
$530.40
Current Price
$998.67
$468.27 premium
Margin of Safety
+37.7%
Fair Value
$10.58
Current Price
$7.13
$3.45 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 30 in profit
Conservative balance sheet, low leverage
Revenue surging 21.5% year-over-year
Earnings expanding 45.5% YoY
Keeps 20 of every $100 in revenue as profit
Attractively priced relative to earnings
Reasonable price relative to book value
Strong operational efficiency at 24.4%
19.6% revenue growth
Earnings expanding 29.0% YoY
Areas to Watch
3.0% margin — thin
Operating margin of 3.7%
Expensive relative to growth rate
Premium valuation, high expectations priced in
Smaller company, higher risk/reward
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 : UG
The strongest argument for UG centers on Profit Margin, P/E Ratio, Price/Book. Profitability is solid with margins at 20.0% and operating margin at 24.4%. Revenue growth of 19.6% demonstrates continued momentum.
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 : UG
The primary concerns for UG are Market Cap.
Key Dynamics to Monitor
COST carries more volatility with a beta of 0.98 — 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.
Monitor DISCOUNT STORES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
UG scores higher overall (67/100 vs 61/100), backed by strong 20.0% margins and 19.6% revenue growth. 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 →United-Guardian Inc
CONSUMER DEFENSIVE · HOUSEHOLD & PERSONAL PRODUCTS · USA
United-Guardian, Inc. manufactures and markets cosmetic ingredients, pharmaceuticals, medical lubricants, and specialty industrial products in the United States and internationally. The company is headquartered in Hauppauge, New York.
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