Comprehensive Stock Comparison
Compare BBB Foods Inc. (TBBB) vs Costco Wholesale Corporation (COST) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | TBBB | 30.3% revenue growth vs COST's 8.2% |
| Value | COST | Lower P/E (49.8x vs 261.7x) |
| Quality / Margins | COST | 3.0% net margin vs TBBB's -2.5% |
| Stability / Safety | COST | Beta 0.44 vs TBBB's 0.63, lower leverage |
| Dividends | COST | 0.5% yield; TBBB pays no meaningful dividend |
| Momentum (1Y) | TBBB | +36.9% vs COST's -3.1% |
| Efficiency (ROA) | COST | 10.0% ROA vs TBBB's -6.7%, ROIC 34.5% vs 11.1% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Defensive / Recession hedge
Business Model
What each company does and how it makes money
BBB Foods operates a chain of grocery retail stores in Mexico targeting low-to-middle income households with a wide range of food, beverages, and household essentials. It generates revenue primarily from in-store sales of branded, private label, and spot products — including groceries, hygiene items, and home goods — supplemented by online sales. The company's competitive advantage lies in its focus on value-conscious consumers and its extensive store network serving price-sensitive segments of the Mexican market.
Costco operates a global chain of membership warehouse clubs that sell a wide range of merchandise at low prices to members. It generates revenue primarily from membership fees — which account for roughly 70% of operating income — and merchandise sales, with a razor-thin markup on goods. The company's moat lies in its extreme operational efficiency, massive buying power, and fiercely loyal membership base that renews at over 90% rates.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Segment breakdown not available.
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
COST leads in 4 of 6 categories (Financial Metrics, Profitability & Efficiency). TBBB leads in 1 (Valuation Metrics).
Financial Metrics (TTM)
COST is the larger business by revenue, generating $280.4B annually — 3.9x TBBB's $72.3B. COST is the more profitable business, keeping 3.0% of every revenue dollar as net income compared to TBBB's -2.5%. On growth, TBBB holds the edge at +35.1% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | TBBBBBB Foods Inc. | COSTCostco Wholesale … |
|---|---|---|
| RevenueTrailing 12 months | $72.3B | $280.4B |
| EBITDAEarnings before interest/tax | $2.0B | $13.4B |
| Net IncomeAfter-tax profit | -$1.8B | $8.3B |
| Free Cash FlowCash after capex | $1.4B | $9.0B |
| Gross MarginGross profit ÷ Revenue | +16.2% | +12.9% |
| Operating MarginEBIT ÷ Revenue | +0.1% | +3.8% |
| Net MarginNet income ÷ Revenue | -2.5% | +3.0% |
| FCF MarginFCF ÷ Revenue | +1.9% | +3.2% |
| Rev. Growth (YoY)Latest quarter vs prior year | +35.1% | +8.3% |
| EPS Growth (YoY)Latest quarter vs prior year | -7.4% | +11.4% |
Valuation Metrics
At 55.5x trailing earnings, COST trades at a 79% valuation discount to TBBB's 261.7x P/E. On an enterprise value basis, TBBB's 16.4x EV/EBITDA is more attractive than COST's 34.5x.
| Metric | TBBBBBB Foods Inc. | COSTCostco Wholesale … |
|---|---|---|
| Market CapShares × price | $2.3B | $448.0B |
| Enterprise ValueMkt cap + debt − cash | $2.7B | $442.0B |
| Trailing P/EPrice ÷ TTM EPS | 261.70x | 55.51x |
| Forward P/EPrice ÷ next-FY EPS est. | — | 49.80x |
| PEG RatioP/E ÷ EPS growth rate | — | 3.68x |
| EV / EBITDAEnterprise value multiple | 16.42x | 34.51x |
| Price / SalesMarket cap ÷ Revenue | 0.68x | 1.63x |
| Price / BookPrice ÷ Book value/share | 21.71x | 15.42x |
| Price / FCFMarket cap ÷ FCF | 29.74x | 57.17x |
Profitability & Efficiency
COST delivers a 27.4% return on equity — every $100 of shareholder capital generates $27 in annual profit, vs $-42 for TBBB. COST carries lower financial leverage with a 0.28x debt-to-equity ratio, signaling a more conservative balance sheet compared to TBBB's 2.28x.
| Metric | TBBBBBB Foods Inc. | COSTCostco Wholesale … |
|---|---|---|
| ROE (TTM)Return on equity | -42.2% | +27.4% |
| ROA (TTM)Return on assets | -6.7% | +10.0% |
| ROICReturn on invested capital | +11.1% | +34.5% |
| ROCEReturn on capital employed | +15.1% | +27.9% |
| Piotroski ScoreFundamental quality 0–9 | 7 | 7 |
| Debt / EquityFinancial leverage | 2.28x | 0.28x |
| Net DebtTotal debt minus cash | $7.8B | -$6.0B |
| Cash & Equiv.Liquid assets | $1.4B | $14.2B |
| Total DebtShort + long-term debt | $9.2B | $8.2B |
| Interest CoverageEBIT ÷ Interest expense | 0.05x | 72.26x |
Total Returns (with DRIP)
A $10,000 investment in COST five years ago would be worth $31,542 today (with dividends reinvested), compared to $19,134 for TBBB. Over the past 12 months, TBBB leads with a +36.9% total return vs COST's -3.1%. The 3-year compound annual growth rate (CAGR) favors COST at 29.0% vs TBBB's 24.1% — a key indicator of consistent wealth creation.
| Metric | TBBBBBB Foods Inc. | COSTCostco Wholesale … |
|---|---|---|
| YTD ReturnYear-to-date | +6.1% | +18.4% |
| 1-Year ReturnPast 12 months | +36.9% | -3.1% |
| 3-Year ReturnCumulative with dividends | +91.3% | +114.7% |
| 5-Year ReturnCumulative with dividends | +91.3% | +215.4% |
| 10-Year ReturnCumulative with dividends | +91.3% | +616.5% |
| CAGR (3Y)Annualised 3-year return | +24.1% | +29.0% |
Risk & Volatility
COST is the less volatile stock with a 0.44 beta — it tends to amplify market swings less than TBBB's 0.63 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. COST currently trades 94.7% from its 52-week high vs TBBB's 90.9% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | TBBBBBB Foods Inc. | COSTCostco Wholesale … |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.63x | 0.44x |
| 52-Week HighHighest price in past year | $40.09 | $1067.08 |
| 52-Week LowLowest price in past year | $23.00 | $846.80 |
| % of 52W HighCurrent price vs 52-week peak | +90.9% | +94.7% |
| RSI (14)Momentum oscillator 0–100 | 51.2 | 53.4 |
| Avg Volume (50D)Average daily shares traded | 547K | 2.1M |
Analyst Outlook
Wall Street rates TBBB as "Buy" and COST as "Buy". Consensus price targets imply 22.1% upside for TBBB (target: $45) vs 3.7% for COST (target: $1048). COST is the only dividend payer here at 0.49% yield — a key consideration for income-focused portfolios.
| Metric | TBBBBBB Foods Inc. | COSTCostco Wholesale … |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $44.50 | $1048.21 |
| # AnalystsCovering analysts | 7 | 57 |
| Dividend YieldAnnual dividend ÷ price | — | +0.5% |
| Dividend StreakConsecutive years of raises | — | 0 |
| Dividend / ShareAnnual DPS | — | $4.91 |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | +0.2% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Feb 24 | Feb 26 | Change |
|---|---|---|---|
| BBB Foods Inc. (TBBB) | 100 | 190.97 | +91.0% |
| Costco Wholesale Co… (COST) | 100 | 129.21 | +29.2% |
Costco Wholesale Co… (COST) returned +215% over 5 years vs BBB Foods Inc. (TBBB)'s +91%. A $10,000 investment in COST 5 years ago would be worth $31,542 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| BBB Foods Inc. (TBBB) | $23.4B | $57.4B | +146.0% |
| Costco Wholesale Co… (COST) | $118.7B | $275.2B | +131.8% |
Costco Wholesale Corporation's revenue grew from $118.7B (2016) to $275.2B (2025) — a 9.8% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| BBB Foods Inc. (TBBB) | -3.5% | 0.6% | +116.5% |
| Costco Wholesale Co… (COST) | 2.0% | 2.9% | +48.7% |
Costco Wholesale Corporation's net margin went from 2% (2016) to 3% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Costco Wholesale Co… (COST) | 30.6 | 47.4 | +54.9% |
Costco Wholesale Corporation has traded in a 29x–55x P/E range over 9 years; current trailing P/E is ~56x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| BBB Foods Inc. (TBBB) | -9.7 | 2.4 | +124.7% |
| Costco Wholesale Co… (COST) | 5.33 | 18.21 | +241.7% |
Costco Wholesale Corporation's EPS grew from $5.33 (2016) to $18.21 (2025) — a 15% CAGR.
Chart 6Free Cash Flow — 5 Years
BBB Foods Inc. generated $1B FCF in 2024 (+57% vs 2021). Costco Wholesale Corporation generated $8B FCF in 2025 (+46% vs 2021).
TBBB vs COST: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is TBBB or COST a better buy right now?
Costco Wholesale Corporation (COST) offers the better valuation at 55.5x trailing P/E (49.8x forward), making it the more compelling value choice. Analysts rate BBB Foods Inc. (TBBB) a "Buy" — based on 7 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — TBBB or COST?
On trailing P/E, Costco Wholesale Corporation (COST) is the cheapest at 55.5x versus BBB Foods Inc. at 261.7x.
03Which is the better long-term investment — TBBB or COST?
Over the past 5 years, Costco Wholesale Corporation (COST) delivered a total return of +215.4%, compared to +91.3% for BBB Foods Inc. (TBBB). A $10,000 investment in COST five years ago would be worth approximately $32K today (assuming dividends reinvested). Over 10 years, the gap is even starker: COST returned +616.5% versus TBBB's +91.3%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — TBBB or COST?
By beta (market sensitivity over 5 years), Costco Wholesale Corporation (COST) is the lower-risk stock at 0.44β versus BBB Foods Inc.'s 0.63β — meaning TBBB is approximately 43% more volatile than COST relative to the S&P 500. On balance sheet safety, Costco Wholesale Corporation (COST) carries a lower debt/equity ratio of 28% versus 2% for BBB Foods Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — TBBB or COST?
Costco Wholesale Corporation (COST) is the more profitable company, earning 2.9% net margin versus 0.6% for BBB Foods Inc. — meaning it keeps 2.9% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: COST leads at 3.8% versus 2.3% for TBBB. At the gross margin level — before operating expenses — TBBB leads at 16.3%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
06Is TBBB or COST more undervalued right now?
Analyst consensus price targets imply the most upside for TBBB: 22.1% to $44.50.
07Which pays a better dividend — TBBB or COST?
In this comparison, COST (0.5% yield) pays a dividend. TBBB does not pay a meaningful dividend and should not be held primarily for income.
08Is TBBB or COST better for a retirement portfolio?
For long-horizon retirement investors, Costco Wholesale Corporation (COST) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.44), +616.5% 10Y return). Both have compounded well over 10 years (COST: +616.5%, TBBB: +91.3%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
09What are the main differences between TBBB and COST?
Both stocks operate in the Consumer Defensive sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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- Sector: Consumer Defensive
- Market Cap > $100B
- Revenue Growth > 5%
- Dividend Yield > 0.5%