WallStSmart

Ambow Education Holding Ltd (AMBO)vsCostco Wholesale Corp (COST)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Costco Wholesale Corp generates 3023081% more annual revenue ($286.27B vs $9.47M). AMBO leads profitability with a 14.3% profit margin vs 3.0%. AMBO appears more attractively valued with a PEG of 0.12. AMBO earns a higher WallStSmart Score of 62/100 (C+).

AMBO

Buy

62

out of 100

Grade: C+

Growth: 4.7Profit: 5.0Value: 7.3Quality: 5.0
Piotroski: 3/9Altman Z: -238.38

COST

Buy

61

out of 100

Grade: C+

Growth: 8.0Profit: 6.5Value: 3.0Quality: 7.5
Piotroski: 4/9Altman Z: 4.84
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AMBOSignificantly Overvalued (-27.9%)

Margin of Safety

-27.9%

Fair Value

$2.01

Current Price

$2.42

$0.41 premium

UndervaluedFair: $2.01Overvalued

Intrinsic value data unavailable for COST.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AMBO4 strengths · Avg: 10.0/10
PEG RatioValuation
0.1210/10

Growing faster than its price suggests

P/E RatioValuation
5.2x10/10

Attractively priced relative to earnings

Price/BookValuation
0.8x10/10

Reasonable price relative to book value

EPS GrowthGrowth
1343.0%10/10

Earnings expanding 1343.0% YoY

COST6 strengths · Avg: 9.0/10
Market CapQuality
$450.10B10/10

Mega-cap, among the largest globally

Altman Z-ScoreHealth
4.8410/10

Safe zone — low bankruptcy risk

Return on EquityProfitability
29.6%9/10

Every $100 of equity generates 30 in profit

Debt/EquityHealth
0.279/10

Conservative balance sheet, low leverage

Revenue GrowthGrowth
21.5%8/10

Revenue surging 21.5% year-over-year

EPS GrowthGrowth
45.5%8/10

Earnings expanding 45.5% YoY

Areas to Watch

AMBO4 concerns · Avg: 2.5/10
Market CapQuality
$6.35M3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Revenue GrowthGrowth
-5.0%2/10

Revenue declined 5.0%

Free Cash FlowQuality
$-196,9372/10

Negative free cash flow — burning cash

COST4 concerns · Avg: 2.5/10
Profit MarginProfitability
3.0%3/10

3.0% margin — thin

Operating MarginProfitability
3.7%3/10

Operating margin of 3.7%

PEG RatioValuation
5.532/10

Expensive relative to growth rate

P/E RatioValuation
52.6x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : AMBO

The strongest argument for AMBO centers on PEG Ratio, P/E Ratio, Price/Book. PEG of 0.12 suggests the stock is reasonably priced for its growth.

Bull 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.

Bear Case : AMBO

The primary concerns for AMBO are Market Cap, Piotroski F-Score, Revenue Growth.

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.

Key Dynamics to Monitor

AMBO profiles as a declining stock while COST is a growth play — different risk/reward profiles.

COST carries more volatility with a beta of 0.98 — 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

AMBO scores higher overall (62/100 vs 61/100). 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.

Ambow Education Holding Ltd

CONSUMER DEFENSIVE · EDUCATION & TRAINING SERVICES · China

Ambow Education Holding Ltd. provides a range of educational and career enhancement products and services to students, recent graduates, corporate employees, and management professionals in the People's Republic of China. The company is headquartered in Beijing, the People's Republic of China.

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 →

Want to dig deeper into these stocks?