WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Costco Wholesale Corp generates 3064163% more annual revenue ($293.59B vs $9.58M). COST leads profitability with a 3.0% profit margin vs -2.6%. AMBO appears more attractively valued with a PEG of 0.12. COST earns a higher WallStSmart Score of 61/100 (C+).

AMBO

Hold

50

out of 100

Grade: D+

Growth: 4.7Profit: 5.0Value: 6.7Quality: 5.0
Piotroski: 4/9Altman Z: -33.05

COST

Buy

61

out of 100

Grade: C+

Growth: 8.0Profit: 6.5Value: 3.7Quality: 6.3
Piotroski: 4/9Altman Z: 4.84

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

Price/BookValuation
0.7x10/10

Reasonable price relative to book value

Return on EquityProfitability
233.4%10/10

Every $100 of equity generates 233 in profit

EPS GrowthGrowth
289.5%10/10

Earnings expanding 289.5% YoY

COST6 strengths · Avg: 8.8/10
Market CapQuality
$401.25B10/10

Mega-cap, among the largest globally

Altman Z-ScoreHealth
4.8410/10

Safe zone — low bankruptcy risk

Return on EquityProfitability
26.4%9/10

Every $100 of equity generates 26 in profit

Revenue GrowthGrowth
21.5%8/10

Revenue surging 21.5% year-over-year

EPS GrowthGrowth
45.5%8/10

Earnings expanding 45.5% YoY

Free Cash FlowQuality
$2.04B8/10

Generating 2.0B in free cash flow

Areas to Watch

AMBO4 concerns · Avg: 2.8/10
Market CapQuality
$5.98M3/10

Smaller company, higher risk/reward

Operating MarginProfitability
1.4%3/10

Operating margin of 1.4%

Debt/EquityHealth
1.023/10

Elevated debt levels

Revenue GrowthGrowth
-13.5%2/10

Revenue declined 13.5%

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
4.422/10

Expensive relative to growth rate

P/E RatioValuation
45.5x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : AMBO

The strongest argument for AMBO centers on PEG Ratio, Price/Book, Return on Equity. 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, Operating Margin, Debt/Equity.

Bear Case : COST

The primary concerns for COST are Profit Margin, Operating Margin, PEG Ratio. A P/E of 45.5x leaves little room for execution misses. Thin 3.0% margins leave little buffer for downturns.

Key Dynamics to Monitor

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

COST carries more volatility with a beta of 0.85 — 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 50/100) and 21.5% revenue growth. 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.

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.

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