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COST vs. LRN: A Head-to-Head Stock Comparison

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Here’s a clear look at COST and LRN, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

SymbolCOSTLRN
Company NameCostco Wholesale CorporationStride, Inc.
CountryUnited StatesUnited States
GICS SectorConsumer StaplesConsumer Discretionary
GICS IndustryConsumer Staples Distribution & RetailDiversified Consumer Services
Market Capitalization417.57 billion USD7.26 billion USD
ExchangeNasdaqGSNYSE
Listing DateJuly 9, 1986December 13, 2007
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of COST and LRN by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.

COST vs. LRN: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolCOSTLRN
5-Day Price Return-4.00%1.68%
13-Week Price Return-7.52%7.76%
26-Week Price Return-11.38%17.20%
52-Week Price Return7.30%108.48%
Month-to-Date Return0.21%29.74%
Year-to-Date Return2.76%60.08%
10-Day Avg. Volume2.09M0.71M
3-Month Avg. Volume2.11M0.74M
3-Month Volatility18.05%44.27%
Beta0.990.09

Profitability

Return on Equity (TTM)

COST

31.13%

Consumer Staples Distribution & Retail Industry

Max
34.20%
Q3
21.61%
Median
13.70%
Q1
5.18%
Min
-9.87%

In the upper quartile for the Consumer Staples Distribution & Retail industry, COST’s Return on Equity of 31.13% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

LRN

21.21%

Diversified Consumer Services Industry

Max
32.65%
Q3
29.77%
Median
16.63%
Q1
11.08%
Min
2.26%

LRN’s Return on Equity of 21.21% is on par with the norm for the Diversified Consumer Services industry, indicating its profitability relative to shareholder equity is typical for the sector.

COST vs. LRN: A comparison of their Return on Equity (TTM) against their respective Consumer Staples Distribution & Retail and Diversified Consumer Services industry benchmarks.

Net Profit Margin (TTM)

COST

2.92%

Consumer Staples Distribution & Retail Industry

Max
7.16%
Q3
3.87%
Median
2.44%
Q1
1.65%
Min
-0.70%

COST’s Net Profit Margin of 2.92% is aligned with the median group of its peers in the Consumer Staples Distribution & Retail industry. This indicates its ability to convert revenue into profit is typical for the sector.

LRN

11.97%

Diversified Consumer Services Industry

Max
18.84%
Q3
13.34%
Median
12.22%
Q1
7.92%
Min
3.76%

LRN’s Net Profit Margin of 11.97% is aligned with the median group of its peers in the Diversified Consumer Services industry. This indicates its ability to convert revenue into profit is typical for the sector.

COST vs. LRN: A comparison of their Net Profit Margin (TTM) against their respective Consumer Staples Distribution & Retail and Diversified Consumer Services industry benchmarks.

Operating Profit Margin (TTM)

COST

3.75%

Consumer Staples Distribution & Retail Industry

Max
9.42%
Q3
5.29%
Median
4.03%
Q1
2.22%
Min
-1.85%

COST’s Operating Profit Margin of 3.75% is around the midpoint for the Consumer Staples Distribution & Retail industry, indicating that its efficiency in managing core business operations is typical for the sector.

LRN

14.97%

Diversified Consumer Services Industry

Max
26.63%
Q3
19.23%
Median
15.23%
Q1
8.71%
Min
-0.71%

LRN’s Operating Profit Margin of 14.97% is around the midpoint for the Diversified Consumer Services industry, indicating that its efficiency in managing core business operations is typical for the sector.

COST vs. LRN: A comparison of their Operating Profit Margin (TTM) against their respective Consumer Staples Distribution & Retail and Diversified Consumer Services industry benchmarks.

Profitability at a Glance

SymbolCOSTLRN
Return on Equity (TTM)31.13%21.21%
Return on Assets (TTM)10.75%13.48%
Net Profit Margin (TTM)2.92%11.97%
Operating Profit Margin (TTM)3.75%14.97%
Gross Profit Margin (TTM)12.78%39.24%

Financial Strength

Current Ratio (MRQ)

COST

1.02

Consumer Staples Distribution & Retail Industry

Max
1.80
Q3
1.25
Median
0.97
Q1
0.82
Min
0.52

COST’s Current Ratio of 1.02 aligns with the median group of the Consumer Staples Distribution & Retail industry, indicating that its short-term liquidity is in line with its sector peers.

LRN

5.39

Diversified Consumer Services Industry

Max
3.40
Q3
1.97
Median
1.66
Q1
0.60
Min
0.15

LRN’s Current Ratio of 5.39 is exceptionally high, placing it well outside the typical range for the Diversified Consumer Services industry. This indicates a very strong liquidity position, though such a high ratio may also suggest that the company is not using its assets efficiently to generate profits.

COST vs. LRN: A comparison of their Current Ratio (MRQ) against their respective Consumer Staples Distribution & Retail and Diversified Consumer Services industry benchmarks.

Debt-to-Equity Ratio (MRQ)

COST

0.21

Consumer Staples Distribution & Retail Industry

Max
3.44
Q3
1.56
Median
1.00
Q1
0.30
Min
0.00

Falling into the lower quartile for the Consumer Staples Distribution & Retail industry, COST’s Debt-to-Equity Ratio of 0.21 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

LRN

0.34

Diversified Consumer Services Industry

Max
2.92
Q3
1.22
Median
0.36
Q1
0.01
Min
0.00

LRN’s Debt-to-Equity Ratio of 0.34 is typical for the Diversified Consumer Services industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

COST vs. LRN: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Consumer Staples Distribution & Retail and Diversified Consumer Services industry benchmarks.

Interest Coverage Ratio (TTM)

COST

91.27

Consumer Staples Distribution & Retail Industry

Max
24.36
Q3
14.71
Median
6.25
Q1
3.16
Min
-10.70

With an Interest Coverage Ratio of 91.27, COST demonstrates a superior capacity to service its debt, placing it well above the typical range for the Consumer Staples Distribution & Retail industry. This stems from either robust earnings or a conservative debt load.

LRN

37.48

Diversified Consumer Services Industry

Max
13.44
Q3
10.58
Median
5.57
Q1
3.04
Min
-2.17

With an Interest Coverage Ratio of 37.48, LRN demonstrates a superior capacity to service its debt, placing it well above the typical range for the Diversified Consumer Services industry. This stems from either robust earnings or a conservative debt load.

COST vs. LRN: A comparison of their Interest Coverage Ratio (TTM) against their respective Consumer Staples Distribution & Retail and Diversified Consumer Services industry benchmarks.

Financial Strength at a Glance

SymbolCOSTLRN
Current Ratio (MRQ)1.025.39
Quick Ratio (MRQ)0.525.15
Debt-to-Equity Ratio (MRQ)0.210.34
Interest Coverage Ratio (TTM)91.2737.48

Growth

Revenue Growth

COST vs. LRN: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

COST vs. LRN: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

COST

0.35%

Consumer Staples Distribution & Retail Industry

Max
6.63%
Q3
3.17%
Median
1.35%
Q1
0.00%
Min
0.00%

COST’s Dividend Yield of 0.35% is consistent with its peers in the Consumer Staples Distribution & Retail industry, providing a dividend return that is standard for its sector.

LRN

0.00%

Diversified Consumer Services Industry

Max
2.29%
Q3
0.98%
Median
0.00%
Q1
0.00%
Min
0.00%

LRN currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

COST vs. LRN: A comparison of their Dividend Yield (TTM) against their respective Consumer Staples Distribution & Retail and Diversified Consumer Services industry benchmarks.

Dividend Payout Ratio (TTM)

COST

25.50%

Consumer Staples Distribution & Retail Industry

Max
163.46%
Q3
90.34%
Median
52.13%
Q1
20.46%
Min
0.00%

COST’s Dividend Payout Ratio of 25.50% is within the typical range for the Consumer Staples Distribution & Retail industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

LRN

0.00%

Diversified Consumer Services Industry

Max
35.94%
Q3
25.79%
Median
0.00%
Q1
0.00%
Min
0.00%

LRN has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

COST vs. LRN: A comparison of their Dividend Payout Ratio (TTM) against their respective Consumer Staples Distribution & Retail and Diversified Consumer Services industry benchmarks.

Dividend at a Glance

SymbolCOSTLRN
Dividend Yield (TTM)0.35%0.00%
Dividend Payout Ratio (TTM)25.50%0.00%

Valuation

Price-to-Earnings Ratio (TTM)

COST

56.05

Consumer Staples Distribution & Retail Industry

Max
49.92
Q3
31.34
Median
23.38
Q1
17.55
Min
6.19

At 56.05, COST’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Consumer Staples Distribution & Retail industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

LRN

24.82

Diversified Consumer Services Industry

Max
33.95
Q3
25.14
Median
19.27
Q1
15.30
Min
5.58

LRN’s P/E Ratio of 24.82 is within the middle range for the Diversified Consumer Services industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

COST vs. LRN: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Consumer Staples Distribution & Retail and Diversified Consumer Services industry benchmarks.

Price-to-Sales Ratio (TTM)

COST

1.64

Consumer Staples Distribution & Retail Industry

Max
1.88
Q3
1.00
Median
0.55
Q1
0.40
Min
0.06

COST’s P/S Ratio of 1.64 is in the upper echelon for the Consumer Staples Distribution & Retail industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.

LRN

2.97

Diversified Consumer Services Industry

Max
3.29
Q3
2.54
Median
2.27
Q1
1.92
Min
1.28

LRN’s P/S Ratio of 2.97 is in the upper echelon for the Diversified Consumer Services industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.

COST vs. LRN: A comparison of their Price-to-Sales Ratio (TTM) against their respective Consumer Staples Distribution & Retail and Diversified Consumer Services industry benchmarks.

Price-to-Book Ratio (MRQ)

COST

16.62

Consumer Staples Distribution & Retail Industry

Max
9.74
Q3
4.99
Median
2.88
Q1
1.77
Min
0.46

At 16.62, COST’s P/B Ratio is at an extreme premium to the Consumer Staples Distribution & Retail industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.

LRN

4.27

Diversified Consumer Services Industry

Max
7.00
Q3
6.37
Median
3.31
Q1
2.13
Min
0.98

LRN’s P/B Ratio of 4.27 is within the conventional range for the Diversified Consumer Services industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

COST vs. LRN: A comparison of their Price-to-Book Ratio (MRQ) against their respective Consumer Staples Distribution & Retail and Diversified Consumer Services industry benchmarks.

Valuation at a Glance

SymbolCOSTLRN
Price-to-Earnings Ratio (TTM)56.0524.82
Price-to-Sales Ratio (TTM)1.642.97
Price-to-Book Ratio (MRQ)16.624.27
Price-to-Free Cash Flow Ratio (TTM)60.0813.49