Costco Wholesale Corp (COST)vsSunlands Technology Group (STG)
COST
Costco Wholesale Corp
$996.08
+1.36%
CONSUMER DEFENSIVE · Cap: $438.30B
STG
Sunlands Technology Group
$2.44
+1.67%
CONSUMER DEFENSIVE · Cap: $31.10M
Smart Verdict
WallStSmart Research — data-driven comparison
Costco Wholesale Corp generates 16373% more annual revenue ($303.15B vs $1.84B). STG leads profitability with a 17.6% profit margin vs 3.0%. STG trades at a lower P/E of 0.7x. STG earns a higher WallStSmart Score of 58/100 (C).
COST
Buy55
out of 100
Grade: C-
STG
Buy58
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
Attractively priced relative to earnings
Reasonable price relative to book value
Every $100 of equity generates 36 in profit
Conservative balance sheet, low leverage
Strong operational efficiency at 20.5%
Areas to Watch
Trading at 12.3x book value
3.0% margin — thin
Operating margin of 3.8%
Expensive relative to growth rate
Smaller company, higher risk/reward
Revenue declined 24.6%
Earnings declined 32.9%
Distress zone — elevated risk
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 : STG
The strongest argument for STG centers on P/E Ratio, Price/Book, Return on Equity. Profitability is solid with margins at 17.6% and operating margin at 20.5%.
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 : STG
The primary concerns for STG are Market Cap, Revenue Growth, EPS Growth.
Key Dynamics to Monitor
COST profiles as a value stock while STG is a declining play — different risk/reward profiles.
STG carries more volatility with a beta of 1.48 — expect wider price swings.
COST is growing revenue faster at 11.1% — sustainability is the question.
Monitor DISCOUNT STORES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
STG scores higher overall (58/100 vs 55/100), backed by strong 17.6% margins. 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 →Sunlands Technology Group
CONSUMER DEFENSIVE · EDUCATION & TRAINING SERVICES · China
Sunlands Technology Group, provides online education services in the People's Republic of China. The company is headquartered in Beijing, the People's Republic of China.
Visit Website →Compare with Other DISCOUNT STORES Stocks
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