Stock Battle: Costco (COST) vs Walmart (WMT)

We compare two good contenders: Costco and Walmart. Get Mike’s views on both companies and the framework to compare two or more stocks on your own.

You’ll Learn

While both companies are part of the consumer staples and discount stores industry, their business models are quite different.
How is Costco’s warehouse business model different from Walmart’s, and why is it one of Costco’s advantages?
Costco and Walmart both show a strong dividend triangle. However, Costco’s seems even more robust.
What are Costco’s (COST) and Walmart’s (WMT) growth vectors?
How would you describe COST and WMT’s potential downsides and risks?
Which one would you find more equipped to face the Amazon competition and why?
Walmart has a larger market cap and a stronger worldwide presence. Its reputation precedes itself: We can find everything and anything at a cheaper price. Doesn’t this make it more resilient to challenging economic situations than Costco, for which you need a membership?
What does the PE Ratio trend look like for both stores?
Is Costco or Walmart winning the battle?
In summary, here are the steps we followed to compare these stocks:
- Look at the business model
- Analyze the dividend triangle
- Learn about growth vectors
- Consider potential downsides and risks
- Have a look at the valuation
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