WallStSmart

Target Corporation (TGT)vs2U Inc (TWOU)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Target Corporation generates 11790% more annual revenue ($107.70B vs $905.83M). TGT leads profitability with a 4.1% profit margin vs -35.1%. TWOU appears more attractively valued with a PEG of 0.19. TGT earns a higher WallStSmart Score of 66/100 (B-).

TGT

Strong Buy

66

out of 100

Grade: B-

Growth: 6.0Profit: 6.0Value: 6.0Quality: 4.5
Piotroski: 3/9Altman Z: 2.47

TWOU

Hold

44

out of 100

Grade: D

Growth: 4.0Profit: 2.5Value: 6.7Quality: 5.0
Piotroski: 4/9Altman Z: -0.67
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

TGTUndervalued (+5.3%)

Margin of Safety

+5.3%

Fair Value

$120.98

Current Price

$155.83

$34.85 discount

UndervaluedFair: $120.98Overvalued

Intrinsic value data unavailable for TWOU.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

TGT5 strengths · Avg: 8.8/10
EPS GrowthGrowth
100.5%10/10

Earnings expanding 100.5% YoY

Market CapQuality
$70.79B9/10

Large-cap with strong market position

Return on EquityProfitability
24.6%9/10

Every $100 of equity generates 25 in profit

P/E RatioValuation
16.2x8/10

Attractively priced relative to earnings

Free Cash FlowQuality
$2.43B8/10

Generating 2.4B in free cash flow

TWOU3 strengths · Avg: 10.0/10
PEG RatioValuation
0.1910/10

Growing faster than its price suggests

Price/BookValuation
0.0x10/10

Reasonable price relative to book value

Debt/EquityHealth
-3.6010/10

Conservative balance sheet, low leverage

Areas to Watch

TGT4 concerns · Avg: 3.3/10
PEG RatioValuation
1.944/10

Expensive relative to growth rate

Profit MarginProfitability
4.1%3/10

4.1% margin — thin

Debt/EquityHealth
1.053/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

TWOU4 concerns · Avg: 2.8/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Market CapQuality
$4.43M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-101.3%2/10

ROE of -101.3% — below average capital efficiency

Revenue GrowthGrowth
-16.8%2/10

Revenue declined 16.8%

Comparative Analysis Report

WallStSmart Research

Bull Case : TGT

The strongest argument for TGT centers on EPS Growth, Market Cap, Return on Equity.

Bull Case : TWOU

The strongest argument for TWOU centers on PEG Ratio, Price/Book, Debt/Equity. PEG of 0.19 suggests the stock is reasonably priced for its growth.

Bear Case : TGT

The primary concerns for TGT are PEG Ratio, Profit Margin, Debt/Equity. Thin 4.1% margins leave little buffer for downturns.

Bear Case : TWOU

The primary concerns for TWOU are EPS Growth, Market Cap, Return on Equity.

Key Dynamics to Monitor

TGT profiles as a value stock while TWOU is a turnaround play — different risk/reward profiles.

TGT carries more volatility with a beta of 0.99 — expect wider price swings.

TGT is growing revenue faster at 5.3% — sustainability is the question.

TGT generates stronger free cash flow (2.4B), providing more financial flexibility.

Bottom Line

TGT scores higher overall (66/100 vs 44/100). Both earn "Strong Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Target Corporation

CONSUMER DEFENSIVE · DISCOUNT STORES · USA

Target Corporation is an American retail corporation. Their retail formats include the discount store Target, the hypermarket SuperTarget, and small-format stores previously named CityTarget and TargetExpress before being consolidated under the Target branding.

2U Inc

CONSUMER DEFENSIVE · EDUCATION & TRAINING SERVICES · USA

2U, Inc. is an educational technology company in the United States, Hong Kong, South Africa, and the United Kingdom. The company is headquartered in Lanham, Maryland.

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