Costco Wholesale Corp (COST)vs22nd Century Group Inc (XXII)
COST
Costco Wholesale Corp
$1,014.53
+1.59%
CONSUMER DEFENSIVE · Cap: $450.10B
XXII
22nd Century Group Inc
$1.56
-3.11%
CONSUMER DEFENSIVE · Cap: $1.20M
Smart Verdict
WallStSmart Research — data-driven comparison
Costco Wholesale Corp generates 4060973% more annual revenue ($286.27B vs $7.05M). COST leads profitability with a 3.0% profit margin vs -71.7%. COST earns a higher WallStSmart Score of 61/100 (C+).
COST
Buy61
out of 100
Grade: C+
XXII
Avoid31
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for COST.
Margin of Safety
+70.6%
Fair Value
$19.09
Current Price
$1.56
$17.53 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 30 in profit
Conservative balance sheet, low leverage
Revenue surging 21.5% year-over-year
Earnings expanding 45.5% YoY
Reasonable price relative to book value
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 -116.6% — below average capital efficiency
Revenue declined 43.1%
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.
Bear Case : COST
The primary concerns for COST are Profit Margin, Operating Margin, PEG Ratio. A P/E of 52.6x 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.
XXII carries more volatility with a beta of 1.12 — expect wider price swings.
COST is growing revenue faster at 21.5% — sustainability is the question.
COST generates stronger free cash flow (1.7B), providing more financial flexibility.
Bottom Line
COST scores higher overall (61/100 vs 31/100) and 21.5% revenue growth. XXII offers better value entry with a 70.6% 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 an innovative biopharmaceutical and agricultural company dedicated to tobacco harm reduction through advanced genetic engineering techniques. By focusing on the development of low-nicotine tobacco products, the firm aims to mitigate nicotine addiction while enhancing public health outcomes. As it strategically diversifies into the burgeoning hemp and cannabis markets, 22nd Century positions itself to capitalize on the expanding legal cannabis landscape. With a robust commitment to scientific research and adherence to regulatory frameworks, the company represents a compelling investment opportunity for institutional investors looking to engage in transformative sectors.
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