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COST vs EDU

COST
Costco Wholesale Corporation
NEUTRAL
Price
$996.43
Market Cap
$442.28B
Sector
Consumer Defensive
AI Confidence
80%
EDU
New Oriental Education & Technology Group Inc.
BULLISH
Price
$51.70
Market Cap
$8.62B
Sector
Consumer Defensive
AI Confidence
75%

Valuation

P/E Ratio
COST
51.82
EDU
19.15
Forward P/E
COST
44.4
EDU
12.31
P/B Ratio
COST
13.78
EDU
2.11
P/S Ratio
COST
1.55
EDU
1.6
EV/EBITDA
COST
32.11
EDU
99.26

Profitability

Gross Margin
COST
12.93%
EDU
54.96%
Operating Margin
COST
3.74%
EDU
12.72%
Profit Margin
COST
2.99%
EDU
7.82%
ROE
COST
29.65%
EDU
10.84%
ROA
COST
8.72%
EDU
4.85%

Growth

Revenue Growth
COST
9.2%
EDU
19.8%
Earnings Growth
COST
13.9%
EDU
60.0%

Financial Health

Debt/Equity
COST
0.26
EDU
0.18
Current Ratio
COST
1.06
EDU
1.66
Quick Ratio
COST
0.54
EDU
1.48

Dividends

Dividend Yield
COST
0.52%
EDU
2.32%
Payout Ratio
COST
27.04%
EDU
22.22%

AI Verdict

COST NEUTRAL

COST shows neutral fundamentals based on deterministic rules. Financial strength is stable (F-Score 4/9). Mixed signals with both opportunities and risks present.

Strengths
Low debt with D/E ratio of 0.26
Strong ROE of 29.7%
Risks
High valuation with P/E of 51.8
Premium vs Graham Number ($176.89)
Low profit margin of 3.0%
EDU BULLISH

EDU presents a stable financial profile with a Piotroski F-Score of 4/9 and a strong balance sheet characterized by very low leverage (Debt/Equity 0.18). While the current price of $51.70 sits above the defensive Graham Number ($38.54), it remains significantly below the growth-based intrinsic value of $79.65. The company is exhibiting powerful growth momentum with 60% YoY earnings growth and a PEG ratio of 0.89, suggesting undervaluation relative to its expansion. However, a severe technical breakdown (0/100 trend) and recent price volatility create a divergence between fundamental value and market sentiment.

Strengths
Exceptional earnings growth (60% YoY) and revenue growth (19.8% YoY)
Very low leverage with a Debt/Equity ratio of 0.18
Attractive valuation relative to growth (PEG Ratio 0.89)
Risks
Extreme bearish technical trend (0/100) indicating strong short-term selling pressure
High historical earnings volatility with significant past misses
Regulatory risks inherent to the Chinese education sector

Compare Another Pair

COST vs EDU: Head-to-Head Comparison

This page compares Costco Wholesale Corporation (COST) and New Oriental Education & Technology Group Inc. (EDU) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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