Echelon
L20 · CompsXP0PASSED0

The wrong peer — why a set can be built badly

Half the skill in comps is knowing what does NOT belong. Below is a deliberately bad set: a chip anchor sitting next to a fund, a bank, and a company from a different sector entirely. The table shows what happens — some members refuse outright, others ground but shouldn't be read as peers.

Diagnose it: say why each member is or isn't a valid comparable to the anchor. The mentor grades the diagnosis — the reasoning about comparability, not a recitation of numbers.

A comparable is a company in a similar line of business. A fund isn't a company at all — it's a basket, with no operating statements. A bank files a different income statement, so the walk metrics don't apply. A large company in another sector files everything but has different economics. Comparability is about business, not size.

The table · NVDAcited per filer, or refused
MetricNVDAFY2026VOOJPMFY2025KOFY2025
Revenue growth (YoY)+65.5% vs FY2025+1.9% vs FY2024
Gross margin71.1%61.6%
Operating margin
Net margin55.6%31.3%27.3%
Return on equity

NVIDIA CORP 10-K vs a deliberately mismatched set (NVDA · VOO · JPM · KO), each cell cited or refused per filer, via SEC EDGAR

  • diagnoses the fund: it isn't an operating company, so it has no comparable fundamentals at all
  • diagnoses the bank: a different income statement, so the walk metrics don't apply
  • states the principle: comparability is about business economics / sector, not size

Educational use only — not investment advice. Figures come from public SEC filings; Echelon teaches you to analyze data, it never recommends buying or selling any security.

Educational use only — not investment advice. Figures come from public SEC filings; Echelon teaches you to analyze data, it never recommends buying or selling any security.