Costco Wholesale Corp (COST)vsLegacy Education Inc. (LGCY)
COST
Costco Wholesale Corp
$1,014.53
+1.59%
CONSUMER DEFENSIVE · Cap: $450.10B
LGCY
Legacy Education Inc.
$10.89
-3.46%
CONSUMER DEFENSIVE · Cap: $147.70M
Smart Verdict
WallStSmart Research — data-driven comparison
Costco Wholesale Corp generates 381012% more annual revenue ($286.27B vs $75.11M). LGCY leads profitability with a 11.0% profit margin vs 3.0%. LGCY trades at a lower P/E of 19.5x. LGCY earns a higher WallStSmart Score of 61/100 (C+).
COST
Buy61
out of 100
Grade: C+
LGCY
Buy61
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for COST.
Margin of Safety
-13.8%
Fair Value
$9.23
Current Price
$10.89
$1.66 premium
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 30 in profit
Conservative balance sheet, low leverage
Revenue surging 21.5% year-over-year
Earnings expanding 45.5% YoY
Revenue surging 40.7% year-over-year
Earnings expanding 50.0% YoY
Every $100 of equity generates 20 in profit
Reasonable price relative to book value
Areas to Watch
3.0% margin — thin
Operating margin of 3.7%
Expensive relative to growth rate
Premium valuation, high expectations priced in
Smaller company, higher risk/reward
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 : LGCY
The strongest argument for LGCY centers on Revenue Growth, EPS Growth, Return on Equity. Revenue growth of 40.7% demonstrates continued momentum.
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 : LGCY
The primary concerns for LGCY are Market Cap.
Key Dynamics to Monitor
LGCY is growing revenue faster at 40.7% — sustainability is the question.
COST generates stronger free cash flow (1.7B), providing more financial flexibility.
Monitor DISCOUNT STORES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
COST scores higher overall (61/100 vs 61/100) and 21.5% 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 →Legacy Education Inc.
CONSUMER DEFENSIVE · EDUCATION & TRAINING SERVICES · USA
Legacy Reserves Inc., an independent energy company, is engaged in the acquisition, development and production of oil and natural gas properties in the United States.
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