Costco Wholesale Corp (COST)vsTAL Education Group (TAL)
COST
Costco Wholesale Corp
$996.08
+1.36%
CONSUMER DEFENSIVE · Cap: $438.30B
TAL
TAL Education Group
$10.06
-1.47%
CONSUMER DEFENSIVE · Cap: $5.58B
Smart Verdict
WallStSmart Research — data-driven comparison
Costco Wholesale Corp generates 9396% more annual revenue ($303.15B vs $3.19B). TAL leads profitability with a 28.4% profit margin vs 3.0%. TAL appears more attractively valued with a PEG of 2.37. TAL earns a higher WallStSmart Score of 80/100 (A-).
COST
Buy55
out of 100
Grade: C-
TAL
Exceptional Buy80
out of 100
Grade: A-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for COST.
Margin of Safety
+89.5%
Fair Value
$113.21
Current Price
$10.06
$103.15 discount
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
Revenue surging 31.9% year-over-year
Earnings expanding 1360.0% YoY
Conservative balance sheet, low leverage
Keeps 28 of every $100 in revenue as profit
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
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 : TAL
The strongest argument for TAL centers on P/E Ratio, Price/Book, Revenue Growth. Profitability is solid with margins at 28.4% and operating margin at 18.1%. Revenue growth of 31.9% 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 : TAL
The primary concerns for TAL are PEG Ratio.
Key Dynamics to Monitor
COST profiles as a value stock while TAL is a growth play — different risk/reward profiles.
COST carries more volatility with a beta of 0.87 — expect wider price swings.
TAL is growing revenue faster at 31.9% — sustainability is the question.
COST generates stronger free cash flow (2.5B), providing more financial flexibility.
Bottom Line
TAL scores higher overall (80/100 vs 55/100), backed by strong 28.4% margins and 31.9% revenue growth. Both earn "Exceptional 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 →TAL Education Group
CONSUMER DEFENSIVE · EDUCATION & TRAINING SERVICES · China
TAL Education Group offers K-12 afterschool tutoring services in the People's Republic of China. The company is headquartered in Beijing, the People's Republic of China.
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