Costco Wholesale Corp (COST)vsLincoln Educational Services (LINC)
COST
Costco Wholesale Corp
$996.08
+1.36%
CONSUMER DEFENSIVE · Cap: $438.30B
LINC
Lincoln Educational Services
$22.13
+1.89%
CONSUMER DEFENSIVE · Cap: $687.72M
Smart Verdict
WallStSmart Research — data-driven comparison
Costco Wholesale Corp generates 53012% more annual revenue ($303.15B vs $570.78M). LINC leads profitability with a 4.0% profit margin vs 3.0%. LINC appears more attractively valued with a PEG of 1.74. LINC earns a higher WallStSmart Score of 56/100 (C).
COST
Buy55
out of 100
Grade: C-
LINC
Buy56
out of 100
Grade: C
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
Conservative balance sheet, low leverage
Generating 2.5B in free cash flow
Revenue surging 22.4% year-over-year
Earnings expanding 20.0% YoY
Areas to Watch
Trading at 12.3x book value
3.0% margin — thin
Operating margin of 3.8%
Expensive relative to growth rate
Expensive relative to growth rate
Moderate valuation
Grey zone — moderate risk
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 11.1% demonstrates continued momentum.
Bull Case : LINC
The strongest argument for LINC centers on Revenue Growth, EPS Growth. Revenue growth of 22.4% demonstrates continued momentum.
Bear Case : COST
The primary concerns for COST are Price/Book, Profit Margin, Operating Margin. A P/E of 47.6x leaves little room for execution misses. Thin 3.0% margins leave little buffer for downturns.
Bear Case : LINC
The primary concerns for LINC are PEG Ratio, P/E Ratio, Altman Z-Score. Thin 4.0% margins leave little buffer for downturns.
Key Dynamics to Monitor
COST profiles as a value stock while LINC is a growth play — different risk/reward profiles.
COST carries more volatility with a beta of 0.87 — expect wider price swings.
LINC is growing revenue faster at 22.4% — sustainability is the question.
COST generates stronger free cash flow (2.5B), providing more financial flexibility.
Bottom Line
LINC scores higher overall (56/100 vs 55/100) and 22.4% 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 →Lincoln Educational Services
CONSUMER DEFENSIVE · EDUCATION & TRAINING SERVICES · USA
Lincoln Educational Services Corporation offers various career-oriented postsecondary education services to high school graduates and working adults in the United States. The company is headquartered in West Orange, New Jersey.
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