COST vs WMT
Costco vs Walmart Inc. — AI-powered side-by-side comparison
VS
WMT
Walmart Inc.
53
Watch
| Metric | COST | WMT |
|---|
| AI Score |
56
|
53
|
| Price |
$898.35
|
$107.46
|
| P/E Ratio |
44.97×
|
38.53×
|
| ROE |
27.8%
|
22.0%
|
| Revenue Growth YoY |
—
|
—
|
| Gross Margin |
12.9%
|
25.2%
|
| Debt / Equity |
0.25×
|
0.75×
|
| Dividend Yield |
0.6%
|
0.9%
|
| RSI (14) |
32.7
|
46.5
|
| Beta |
0.855
|
0.595
|
| Expected Upside |
+0.0%
|
+2.7%
|
AI Committee View
Current Innellis committee reasoning for COST versus WMT.
COST leads by 3 points.
COST scores 56/100 (Watch) versus WMT at 53/100 (Watch).
COST Committee View
67% agreement
6 analysts
Some positive signals exist — low leverage (debt-to-equity 0.25) -- balance sheet can absorb a shock — but they are not yet strong enough to justify a Buy. The committee is monitoring for confirmation.
Bull Case
- ROE of 28.3% shows genuine earnings power backing the valuation — Value
- Quarter-over-quarter growth rate is ACCELERATING, not just positive — Growth
- Low leverage (debt-to-equity 0.25) -- balance sheet can absorb a shock — Risk
Bear Case
- P/E of 44.9 is expensive by classic value standards — Value
- Price-to-book of 14.3x prices in significant intangible value — Value
- 2 consecutive earnings misses -- execution concerns — Growth
WMT Committee View
50% agreement
6 analysts
The committee is genuinely divided. Macro Analyst sees a compelling case. Risk Analyst remains cautious — current ratio of 0.79 is tight -- limited short-term liquidity cushion. This disagreement is itself the signal — the setup is not clean in either direction.
Bull Case
- ROE of 22.7% shows genuine earnings power backing the valuation — Value
- Quarter-over-quarter growth rate is ACCELERATING, not just positive — Growth
- MACD histogram positive -- bullish momentum — Technical
Bear Case
- P/E of 38.4 is moderate-to-rich — Value
- Price-to-book of 9.9x prices in significant intangible value — Value
- Price structure making lower highs and lower lows — Technical