WallStSmart

Costco Wholesale Corp (COST)vsLaureate Education Inc (LAUR)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Costco Wholesale Corp generates 15942% more annual revenue ($293.59B vs $1.83B). LAUR leads profitability with a 17.6% profit margin vs 3.0%. LAUR appears more attractively valued with a PEG of 1.02. LAUR earns a higher WallStSmart Score of 77/100 (B+).

COST

Buy

61

out of 100

Grade: C+

Growth: 8.0Profit: 6.5Value: 3.7Quality: 6.3
Piotroski: 4/9Altman Z: 4.84

LAUR

Strong Buy

77

out of 100

Grade: B+

Growth: 8.7Profit: 9.0Value: 6.3Quality: 5.5
Piotroski: 4/9Altman Z: 2.27

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

COST6 strengths · Avg: 8.8/10
Market CapQuality
$401.25B10/10

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

Revenue GrowthGrowth
21.5%8/10

Revenue surging 21.5% year-over-year

EPS GrowthGrowth
45.5%8/10

Earnings expanding 45.5% YoY

Free Cash FlowQuality
$2.04B8/10

Generating 2.0B in free cash flow

LAUR5 strengths · Avg: 9.0/10
Operating MarginProfitability
36.3%10/10

Strong operational efficiency at 36.3%

EPS GrowthGrowth
50.8%10/10

Earnings expanding 50.8% YoY

Return on EquityProfitability
26.7%9/10

Every $100 of equity generates 27 in profit

P/E RatioValuation
16.5x8/10

Attractively priced relative to earnings

Revenue GrowthGrowth
17.5%8/10

17.5% revenue growth

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
4.422/10

Expensive relative to growth rate

P/E RatioValuation
45.5x2/10

Premium valuation, high expectations priced in

LAUR0 concerns · Avg: 0/10

No major concerns identified

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 : LAUR

The strongest argument for LAUR centers on Operating Margin, EPS Growth, Return on Equity. Profitability is solid with margins at 17.6% and operating margin at 36.3%. Revenue growth of 17.5% demonstrates continued momentum.

Bear Case : COST

The primary concerns for COST are Profit Margin, Operating Margin, PEG Ratio. A P/E of 45.5x leaves little room for execution misses. Thin 3.0% margins leave little buffer for downturns.

Bear Case : LAUR

No major red flags identified for LAUR, but monitor valuation.

Key Dynamics to Monitor

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

COST is growing revenue faster at 21.5% — 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

LAUR scores higher overall (77/100 vs 61/100), backed by strong 17.6% margins and 17.5% revenue growth. 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 →

Laureate Education Inc

CONSUMER DEFENSIVE · EDUCATION & TRAINING SERVICES · USA

Laureate Education, Inc. offers higher education programs and services to students through a network of universities and institutions of higher education. The company is headquartered in Baltimore, Maryland.

Want to dig deeper into these stocks?