Costco Wholesale Corp (COST)vsUS Foods Holding Corp (USFD)
COST
Costco Wholesale Corp
$996.08
+1.36%
CONSUMER DEFENSIVE · Cap: $438.30B
USFD
US Foods Holding Corp
$101.93
+0.87%
CONSUMER DEFENSIVE · Cap: $22.05B
Smart Verdict
WallStSmart Research — data-driven comparison
Costco Wholesale Corp generates 655% more annual revenue ($303.15B vs $40.13B). COST leads profitability with a 3.0% profit margin vs 1.8%. USFD appears more attractively valued with a PEG of 0.99. USFD earns a higher WallStSmart Score of 59/100 (C).
COST
Buy55
out of 100
Grade: C-
USFD
Buy59
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
Safe zone — low bankruptcy risk
Growing faster than its price suggests
Earnings expanding 29.2% YoY
Areas to Watch
Trading at 12.3x book value
3.0% margin — thin
Operating margin of 3.8%
Expensive relative to growth rate
Premium valuation, high expectations priced in
4.5% revenue growth
1.8% margin — thin
Operating margin of 4.2%
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 : USFD
The strongest argument for USFD centers on Altman Z-Score, PEG Ratio, EPS Growth. PEG of 0.99 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 : USFD
The primary concerns for USFD are P/E Ratio, Revenue Growth, Profit Margin. Thin 1.8% margins leave little buffer for downturns.
Key Dynamics to Monitor
COST carries more volatility with a beta of 0.87 — expect wider price swings.
COST is growing revenue faster at 11.1% — sustainability is the question.
COST generates stronger free cash flow (2.5B), providing more financial flexibility.
Monitor DISCOUNT STORES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
USFD scores higher overall (59/100 vs 55/100). 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 →US Foods Holding Corp
CONSUMER DEFENSIVE · FOOD DISTRIBUTION · USA
US Foods Holding Corp. The company is headquartered in Rosemont, Illinois.
Visit Website →Compare with Other DISCOUNT STORES Stocks
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