Costco Wholesale Corp (COST)vsGrand Canyon Education Inc (LOPE)
COST
Costco Wholesale Corp
$996.08
+1.36%
CONSUMER DEFENSIVE · Cap: $438.30B
LOPE
Grand Canyon Education Inc
$153.97
-2.12%
CONSUMER DEFENSIVE · Cap: $4.01B
Smart Verdict
WallStSmart Research — data-driven comparison
Costco Wholesale Corp generates 26444% more annual revenue ($303.15B vs $1.14B). LOPE leads profitability with a 19.6% profit margin vs 3.0%. LOPE appears more attractively valued with a PEG of 0.92. LOPE earns a higher WallStSmart Score of 69/100 (B-).
COST
Buy55
out of 100
Grade: C-
LOPE
Strong Buy69
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for COST.
Margin of Safety
-49.1%
Fair Value
$107.53
Current Price
$153.97
$46.44 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 26 in profit
Conservative balance sheet, low leverage
Generating 2.5B in free cash flow
Every $100 of equity generates 32 in profit
Safe zone — low bankruptcy risk
Conservative balance sheet, low leverage
Growing faster than its price suggests
Strong operational efficiency at 22.0%
Areas to Watch
Trading at 12.3x book value
3.0% margin — thin
Operating margin of 3.8%
Expensive relative to growth rate
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 11.1% demonstrates continued momentum.
Bull Case : LOPE
The strongest argument for LOPE centers on Return on Equity, Altman Z-Score, Debt/Equity. Profitability is solid with margins at 19.6% and operating margin at 22.0%. PEG of 0.92 suggests the stock is reasonably priced for its growth.
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 : LOPE
No major red flags identified for LOPE, but monitor valuation.
Key Dynamics to Monitor
COST profiles as a value stock while LOPE is a mature play — different risk/reward profiles.
COST carries more volatility with a beta of 0.87 — expect wider price swings.
COST is growing revenue faster at 11.1% — sustainability is the question.
COST generates stronger free cash flow (2.5B), providing more financial flexibility.
Bottom Line
LOPE scores higher overall (69/100 vs 55/100), backed by strong 19.6% margins. Both earn "Strong 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 →Grand Canyon Education Inc
CONSUMER DEFENSIVE · EDUCATION & TRAINING SERVICES · USA
Grand Canyon Education, Inc. provides educational services to colleges and universities in the United States. The company is headquartered in Phoenix, Arizona.
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