Costco Wholesale Corp (COST)vsNew Oriental Education & Technology (EDU)
COST
Costco Wholesale Corp
$904.77
+0.26%
CONSUMER DEFENSIVE · Cap: $401.25B
EDU
New Oriental Education & Technology
$55.82
+2.27%
CONSUMER DEFENSIVE · Cap: $9.92B
Smart Verdict
WallStSmart Research — data-driven comparison
Costco Wholesale Corp generates 5086% more annual revenue ($293.59B vs $5.66B). EDU leads profitability with a 8.4% profit margin vs 3.0%. EDU appears more attractively valued with a PEG of 1.01. EDU earns a higher WallStSmart Score of 64/100 (C+).
COST
Buy61
out of 100
Grade: C+
EDU
Buy64
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for COST.
Margin of Safety
+82.5%
Fair Value
$350.15
Current Price
$55.82
$294.33 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
Earnings expanding 791.0% YoY
Conservative balance sheet, low leverage
Reasonable price relative to book value
Revenue surging 23.0% year-over-year
Areas to Watch
3.0% margin — thin
Operating margin of 3.7%
Expensive relative to growth rate
Premium valuation, high expectations priced in
No major concerns identified
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 : EDU
The strongest argument for EDU centers on EPS Growth, Debt/Equity, Price/Book. Revenue growth of 23.0% demonstrates continued momentum. PEG of 1.01 suggests the stock is reasonably priced for its growth.
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.
Bear Case : EDU
No major red flags identified for EDU, but monitor valuation.
Key Dynamics to Monitor
COST carries more volatility with a beta of 0.85 — expect wider price swings.
EDU is growing revenue faster at 23.0% — sustainability is the question.
COST generates stronger free cash flow (2.0B), providing more financial flexibility.
Monitor DISCOUNT STORES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
EDU scores higher overall (64/100 vs 61/100) and 23.0% revenue growth. 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.
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 →New Oriental Education & Technology
CONSUMER DEFENSIVE · EDUCATION & TRAINING SERVICES · China
New Oriental Education & Technology Group Inc. provides private educational services under the New Oriental brand in the People's Republic of China. The company is headquartered in Beijing, the People's Republic of China.
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