WallStSmart

Costco Wholesale Corp (COST)vsFour Seasons Education Cayman (FEDU)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Costco Wholesale Corp generates 109288% more annual revenue ($286.27B vs $261.70M). FEDU leads profitability with a 3.4% profit margin vs 3.0%. FEDU trades at a lower P/E of 16.8x. COST earns a higher WallStSmart Score of 61/100 (C+).

COST

Buy

61

out of 100

Grade: C+

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

FEDU

Hold

48

out of 100

Grade: D+

Growth: 6.7Profit: 4.0Value: 7.7Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for COST.

FEDUUndervalued (+86.3%)

Margin of Safety

+86.3%

Fair Value

$73.48

Current Price

$11.00

$62.48 discount

UndervaluedFair: $73.48Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

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

FEDU3 strengths · Avg: 9.3/10
Price/BookValuation
0.3x10/10

Reasonable price relative to book value

EPS GrowthGrowth
358.6%10/10

Earnings expanding 358.6% YoY

P/E RatioValuation
16.8x8/10

Attractively priced relative to earnings

Areas to Watch

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

FEDU3 concerns · Avg: 3.0/10
Market CapQuality
$21.65M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
1.7%3/10

ROE of 1.7% — below average capital efficiency

Profit MarginProfitability
3.4%3/10

3.4% margin — thin

Comparative Analysis Report

WallStSmart Research

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.

Bull Case : FEDU

The strongest argument for FEDU centers on Price/Book, EPS Growth, P/E Ratio.

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 : FEDU

The primary concerns for FEDU are Market Cap, Return on Equity, Profit Margin. Thin 3.4% margins leave little buffer for downturns.

Key Dynamics to Monitor

COST profiles as a growth stock while FEDU is a value 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.

Monitor DISCOUNT STORES industry trends, competitive dynamics, and regulatory changes.

Bottom Line

COST scores higher overall (61/100 vs 48/100) and 21.5% revenue growth. FEDU offers better value entry with a 86.3% margin of safety. 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.

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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Four Seasons Education Cayman

CONSUMER DEFENSIVE · EDUCATION & TRAINING SERVICES · China

Four Seasons Education (Cayman) Inc., provides after-school education services that focus on mathematics education for kindergarten, elementary, and high school students in the People's Republic of China. The company is headquartered in Shanghai, the People's Republic of China.

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