Costco Wholesale Corp (COST)vsWeis Markets Inc (WMK)
COST
Costco Wholesale Corp
$983.86
+1.29%
CONSUMER DEFENSIVE · Cap: $436.71B
WMK
Weis Markets Inc
$68.26
+1.43%
CONSUMER DEFENSIVE · Cap: $1.69B
Smart Verdict
WallStSmart Research — data-driven comparison
Costco Wholesale Corp generates 5674% more annual revenue ($286.27B vs $4.96B). COST leads profitability with a 3.0% profit margin vs 1.9%. WMK appears more attractively valued with a PEG of 1.38. COST earns a higher WallStSmart Score of 53/100 (C-).
COST
Buy53
out of 100
Grade: C-
WMK
Hold49
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-76.5%
Fair Value
$557.28
Current Price
$983.86
$426.58 premium
Margin of Safety
-185.3%
Fair Value
$24.82
Current Price
$68.26
$43.44 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
Reasonable price relative to book value
Safe zone — low bankruptcy risk
Conservative balance sheet, low leverage
Areas to Watch
Trading at 13.6x book value
3.0% margin — thin
Operating margin of 3.7%
Expensive relative to growth rate
Smaller company, higher risk/reward
ROE of 6.7% — below average capital efficiency
1.9% margin — thin
Operating margin of 2.8%
Comparative Analysis Report
WallStSmart ResearchBull Case : COST
The strongest argument for COST centers on Market Cap, Altman Z-Score, Return on Equity.
Bull Case : WMK
The strongest argument for WMK centers on Price/Book, Altman Z-Score, Debt/Equity. PEG of 1.38 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 51.3x leaves little room for execution misses. Thin 3.0% margins leave little buffer for downturns.
Bear Case : WMK
The primary concerns for WMK are Market Cap, Return on Equity, Profit Margin. Thin 1.9% margins leave little buffer for downturns.
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.
COST generates stronger free cash flow (1.7B), providing more financial flexibility.
Monitor DISCOUNT STORES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
COST scores higher overall (53/100 vs 49/100). 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 →Weis Markets Inc
CONSUMER DEFENSIVE · GROCERY STORES · USA
Weis Markets, Inc. is a food retailer in Pennsylvania and the surrounding states. The company is headquartered in Sunbury, Pennsylvania.
Visit Website →Compare with Other DISCOUNT STORES Stocks
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