Costco Wholesale Corp (COST)vsUniversal Health Services Inc (UHS)
COST
Costco Wholesale Corp
$974.86
+0.49%
CONSUMER DEFENSIVE · Cap: $432.25B
UHS
Universal Health Services Inc
$186.72
+0.43%
HEALTHCARE · Cap: $11.41B
Smart Verdict
WallStSmart Research — data-driven comparison
Costco Wholesale Corp generates 1549% more annual revenue ($286.27B vs $17.36B). UHS leads profitability with a 8.6% profit margin vs 3.0%. UHS appears more attractively valued with a PEG of 1.29. UHS earns a higher WallStSmart Score of 76/100 (B+).
COST
Buy53
out of 100
Grade: C-
UHS
Strong Buy76
out of 100
Grade: B+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-74.7%
Fair Value
$558.15
Current Price
$974.86
$416.71 premium
Margin of Safety
+78.6%
Fair Value
$1081.08
Current Price
$186.72
$894.36 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
Generating 1.7B in free cash flow
Attractively priced relative to earnings
Every $100 of equity generates 21 in profit
Reasonable price relative to book value
Earnings expanding 42.7% YoY
Areas to Watch
Trading at 13.5x book value
3.0% margin — thin
Operating margin of 3.7%
Expensive relative to growth rate
No major concerns identified
Comparative Analysis Report
WallStSmart ResearchBull Case : COST
The strongest argument for COST centers on Market Cap, Altman Z-Score, Return on Equity.
Bull Case : UHS
The strongest argument for UHS centers on P/E Ratio, Return on Equity, Price/Book. PEG of 1.29 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 50.7x leaves little room for execution misses. Thin 3.0% margins leave little buffer for downturns.
Bear Case : UHS
No major red flags identified for UHS, but monitor valuation.
Key Dynamics to Monitor
UHS carries more volatility with a beta of 1.26 — expect wider price swings.
COST is growing revenue faster at 9.2% — 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
UHS scores higher overall (76/100 vs 53/100). 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 →Universal Health Services Inc
HEALTHCARE · MEDICAL CARE FACILITIES · USA
UnitedHealth Group Incorporated is an American for-profit multinational managed healthcare and insurance company based in Minnetonka, Minnesota. It offers health care products and insurance services.
Visit Website →Compare with Other DISCOUNT STORES Stocks
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