Costco Wholesale Corp (COST)vsWelltower Inc (WELL)
COST
Costco Wholesale Corp
$974.86
+0.11%
CONSUMER DEFENSIVE · Cap: $432.25B
WELL
Welltower Inc
$196.73
+0.06%
REAL ESTATE · Cap: $137.19B
Smart Verdict
WallStSmart Research — data-driven comparison
Costco Wholesale Corp generates 2541% more annual revenue ($286.27B vs $10.84B). WELL leads profitability with a 8.6% profit margin vs 3.0%. WELL appears more attractively valued with a PEG of 3.62. COST earns a higher WallStSmart Score of 53/100 (C-).
COST
Buy53
out of 100
Grade: C-
WELL
Hold39
out of 100
Grade: F
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
-2052.0%
Fair Value
$9.66
Current Price
$196.73
$187.07 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
Generating 1.7B in free cash flow
Revenue surging 41.3% year-over-year
Large-cap with strong market position
Areas to Watch
Trading at 13.5x book value
3.0% margin — thin
Operating margin of 3.7%
Expensive relative to growth rate
ROE of 2.5% — below average capital efficiency
Expensive relative to growth rate
Premium valuation, high expectations priced in
Earnings declined 26.3%
Comparative Analysis Report
WallStSmart ResearchBull Case : COST
The strongest argument for COST centers on Market Cap, Altman Z-Score, Return on Equity.
Bull Case : WELL
The strongest argument for WELL centers on Revenue Growth, Market Cap. Revenue growth of 41.3% demonstrates continued momentum.
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 : WELL
The primary concerns for WELL are Return on Equity, PEG Ratio, P/E Ratio. A P/E of 138.5x leaves little room for execution misses.
Key Dynamics to Monitor
COST profiles as a value stock while WELL is a hypergrowth play — different risk/reward profiles.
COST carries more volatility with a beta of 0.99 — expect wider price swings.
WELL is growing revenue faster at 41.3% — sustainability is the question.
COST generates stronger free cash flow (1.7B), providing more financial flexibility.
Bottom Line
COST scores higher overall (53/100 vs 39/100). Both earn "Buy" and "Hold" 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 →Welltower Inc
REAL ESTATE · REIT - HEALTHCARE FACILITIES · USA
Welltower Inc. is a real estate investment trust that invests in healthcare infrastructure.
Visit Website →Compare with Other DISCOUNT STORES Stocks
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