Costco Wholesale Corp (COST)vsWipro Limited ADR (WIT)
COST
Costco Wholesale Corp
$974.86
+0.11%
CONSUMER DEFENSIVE · Cap: $432.25B
WIT
Wipro Limited ADR
$2.09
-0.48%
TECHNOLOGY · Cap: $22.00B
Smart Verdict
WallStSmart Research — data-driven comparison
Wipro Limited ADR generates 218% more annual revenue ($908.92B vs $286.27B). WIT leads profitability with a 14.6% profit margin vs 3.0%. WIT appears more attractively valued with a PEG of 2.43. WIT earns a higher WallStSmart Score of 53/100 (C-).
COST
Buy53
out of 100
Grade: C-
WIT
Buy53
out of 100
Grade: C-
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
-171.6%
Fair Value
$0.88
Current Price
$2.09
$1.21 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
Generating 37.9B in free cash flow
Safe zone — low bankruptcy risk
Attractively priced relative to earnings
Reasonable price relative to book value
Areas to Watch
Trading at 13.5x book value
3.0% margin — thin
Operating margin of 3.7%
Expensive relative to growth rate
Expensive relative to growth rate
Earnings declined 7.2%
Comparative Analysis Report
WallStSmart ResearchBull Case : COST
The strongest argument for COST centers on Market Cap, Altman Z-Score, Return on Equity.
Bull Case : WIT
The strongest argument for WIT centers on Free Cash Flow, Altman Z-Score, P/E Ratio.
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 : WIT
The primary concerns for WIT are PEG Ratio, EPS Growth.
Key Dynamics to Monitor
COST carries more volatility with a beta of 0.99 — expect wider price swings.
COST is growing revenue faster at 9.2% — sustainability is the question.
WIT generates stronger free cash flow (37.9B), providing more financial flexibility.
Monitor DISCOUNT STORES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
COST scores higher overall (53/100 vs 53/100). 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 →Wipro Limited ADR
TECHNOLOGY · INFORMATION TECHNOLOGY SERVICES · USA
Wipro Limited is a global information technology (IT), consulting and business process services company. The company is headquartered in Bengaluru, India.
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