WallStSmart

Costco Wholesale Corp (COST)vsPerdoceo Education Corp (PRDO)

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Smart Verdict

WallStSmart Research — data-driven comparison

Costco Wholesale Corp generates 34093% more annual revenue ($293.59B vs $858.61M). PRDO leads profitability with a 20.6% profit margin vs 3.0%. PRDO appears more attractively valued with a PEG of 0.65. PRDO earns a higher WallStSmart Score of 74/100 (B).

COST

Buy

55

out of 100

Grade: C-

Growth: 6.7Profit: 6.5Value: 3.7Quality: 6.3
Piotroski: 4/9Altman Z: 4.84

PRDO

Strong Buy

74

out of 100

Grade: B

Growth: 6.0Profit: 8.5Value: 7.7Quality: 9.0
Piotroski: 5/9Altman Z: 4.51

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

COST4 strengths · Avg: 9.3/10
Market CapQuality
$401.22B10/10

Mega-cap, among the largest globally

Altman Z-ScoreHealth
4.8410/10

Safe zone — low bankruptcy risk

Return on EquityProfitability
26.4%9/10

Every $100 of equity generates 26 in profit

Free Cash FlowQuality
$2.04B8/10

Generating 2.0B in free cash flow

PRDO6 strengths · Avg: 9.2/10
P/E RatioValuation
11.4x10/10

Attractively priced relative to earnings

Debt/EquityHealth
0.0510/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
4.5110/10

Safe zone — low bankruptcy risk

Profit MarginProfitability
20.6%9/10

Keeps 21 of every $100 in revenue as profit

PEG RatioValuation
0.658/10

Growing faster than its price suggests

Price/BookValuation
1.8x8/10

Reasonable price relative to book value

Areas to Watch

COST4 concerns · Avg: 3.0/10
Price/BookValuation
12.2x4/10

Trading at 12.2x book value

Profit MarginProfitability
3.0%3/10

3.0% margin — thin

Operating MarginProfitability
4.0%3/10

Operating margin of 4.0%

PEG RatioValuation
4.412/10

Expensive relative to growth rate

PRDO2 concerns · Avg: 3.5/10
Revenue GrowthGrowth
1.8%4/10

1.8% revenue growth

Market CapQuality
$1.95B3/10

Smaller company, higher risk/reward

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 11.6% demonstrates continued momentum.

Bull Case : PRDO

The strongest argument for PRDO centers on P/E Ratio, Debt/Equity, Altman Z-Score. Profitability is solid with margins at 20.6% and operating margin at 25.7%. PEG of 0.65 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 45.3x leaves little room for execution misses. Thin 3.0% margins leave little buffer for downturns.

Bear Case : PRDO

The primary concerns for PRDO are Revenue Growth, Market Cap.

Key Dynamics to Monitor

COST carries more volatility with a beta of 0.85 — expect wider price swings.

COST is growing revenue faster at 11.6% — 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

PRDO scores higher overall (74/100 vs 55/100), backed by strong 20.6% 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.

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Perdoceo Education Corp

CONSUMER DEFENSIVE · EDUCATION & TRAINING SERVICES · USA

Perdoceo Education Corporation provides postsecondary education to students through online, campus-based, and blended learning programs in the United States. The company is headquartered in Schaumburg, Illinois.

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