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COST vs GOTU

COST
Costco Wholesale Corporation
NEUTRAL
Price
$996.43
Market Cap
$442.28B
Sector
Consumer Defensive
AI Confidence
80%
GOTU
Gaotu Techedu Inc.
BEARISH
Price
$1.89
Market Cap
$450.7M
Sector
Consumer Defensive
AI Confidence
85%

Valuation

P/E Ratio
COST
51.82
GOTU
--
Forward P/E
COST
44.4
GOTU
12.19
P/B Ratio
COST
13.78
GOTU
2.47
P/S Ratio
COST
1.55
GOTU
0.07
EV/EBITDA
COST
32.11
GOTU
5.73

Profitability

Gross Margin
COST
12.93%
GOTU
67.44%
Operating Margin
COST
3.74%
GOTU
-7.0%
Profit Margin
COST
2.99%
GOTU
-5.26%
ROE
COST
29.65%
GOTU
-20.29%
ROA
COST
8.72%
GOTU
-5.23%

Growth

Revenue Growth
COST
9.2%
GOTU
21.4%
Earnings Growth
COST
13.9%
GOTU
--

Financial Health

Debt/Equity
COST
0.26
GOTU
0.61
Current Ratio
COST
1.06
GOTU
0.94
Quick Ratio
COST
0.54
GOTU
0.83

Dividends

Dividend Yield
COST
0.52%
GOTU
--
Payout Ratio
COST
27.04%
GOTU
0.0%

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%
GOTU BEARISH

The deterministic health baseline is critically weak, highlighted by a Piotroski F-Score of 2/9 and a bearish technical trend of 0/100. While the company shows strong top-line revenue growth (21.4% YoY) and a very low Price/Sales ratio (0.07), these are overshadowed by negative ROE (-20.29%) and a current ratio below 1.0 (0.94), indicating liquidity risks. Despite analyst target prices suggesting significant upside, the fundamental decay and long-term price collapse (-94.7% over 5 years) suggest a high-risk speculative profile rather than a value investment.

Strengths
Strong revenue growth of 21.40% YoY
Extremely low Price/Sales ratio (0.07) suggesting deep undervaluation of sales
High gross margins (67.43%)
Risks
Critically low Piotroski F-Score (2/9) indicating poor financial health
Liquidity risk with a current ratio of 0.94 (below 1.0)
Negative profitability metrics (ROE -20.29%, Profit Margin -5.26%)

Compare Another Pair

COST vs GOTU: Head-to-Head Comparison

This page compares Costco Wholesale Corporation (COST) and Gaotu Techedu Inc. (GOTU) 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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