Costco Wholesale Corp (COST)vs22nd Century Group Inc (XXII)
COST
Costco Wholesale Corp
$953.13
+0.59%
CONSUMER DEFENSIVE · Cap: $434.37B
XXII
22nd Century Group Inc
$4.22
-10.87%
CONSUMER DEFENSIVE · Cap: $1.38M
Smart Verdict
WallStSmart Research — data-driven comparison
Costco Wholesale Corp generates 4842173% more annual revenue ($293.59B vs $6.06M). COST leads profitability with a 3.0% profit margin vs -65.8%. COST earns a higher WallStSmart Score of 61/100 (C+).
COST
Buy61
out of 100
Grade: C+
XXII
Avoid32
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for COST.
Margin of Safety
+80.9%
Fair Value
$29.44
Current Price
$4.22
$25.22 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 26 in profit
Revenue surging 21.5% year-over-year
Earnings expanding 45.5% YoY
Generating 2.0B in free cash flow
Reasonable price relative to book value
Conservative balance sheet, low leverage
Areas to Watch
3.0% margin — thin
Operating margin of 3.7%
Expensive relative to growth rate
Premium valuation, high expectations priced in
0.0% earnings growth
Smaller company, higher risk/reward
ROE of -103.6% — below average capital efficiency
Revenue declined 43.3%
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 21.5% demonstrates continued momentum.
Bull Case : XXII
The strongest argument for XXII centers on Price/Book, Debt/Equity.
Bear Case : COST
The primary concerns for COST are Profit Margin, Operating Margin, PEG Ratio. A P/E of 49.3x leaves little room for execution misses. Thin 3.0% margins leave little buffer for downturns.
Bear Case : XXII
The primary concerns for XXII are EPS Growth, Market Cap, Return on Equity.
Key Dynamics to Monitor
COST profiles as a growth stock while XXII is a turnaround play — different risk/reward profiles.
COST carries more volatility with a beta of 0.87 — expect wider price swings.
COST is growing revenue faster at 21.5% — sustainability is the question.
COST generates stronger free cash flow (2.0B), providing more financial flexibility.
Bottom Line
COST scores higher overall (61/100 vs 32/100) and 21.5% revenue growth. XXII offers better value entry with a 80.9% margin of safety. Both earn "Buy" and "Avoid" 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 →22nd Century Group Inc
CONSUMER DEFENSIVE · TOBACCO · USA
22nd Century Group Inc (Ticker: XXII) is a pioneering biopharmaceutical and agricultural firm focused on tobacco harm reduction via advanced genetic engineering. The company is committed to developing low-nicotine tobacco products to mitigate nicotine addiction, thereby promoting better public health outcomes. In addition to its core focus, 22nd Century is strategically expanding into the rapidly evolving hemp and cannabis markets, positioning itself favorably within the burgeoning legal cannabis industry. With a strong emphasis on scientific research and regulatory compliance, 22nd Century emerges as an attractive investment opportunity for institutional investors seeking to engage in transformative and socially responsible sectors.
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