Comprehensive Stock Comparison
Compare Walmart Inc. (WMT) vs Costco Wholesale Corporation (COST) vs Target Corporation (TGT) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
Selected Stocks
Add up to 10 tickers. Use presets or search to get started.
Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | COST | 8.2% revenue growth vs TGT's -0.8% |
| Value | TGT | Lower P/E (15.6x vs 49.8x), PEG 2.28 vs 3.30 |
| Quality / Margins | TGT | 3.8% net margin vs COST's 3.0% |
| Stability / Safety | COST | Beta 0.44 vs TGT's 0.98, lower leverage |
| Dividends | TGT | 3.9% yield, 21-year raise streak, vs COST's 0.5% |
| Momentum (1Y) | WMT | +30.7% vs TGT's -4.8% |
| Efficiency (ROA) | COST | 10.0% ROA vs TGT's 6.7%, ROIC 34.5% vs 13.4% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Valuation efficiency (growth/$)
Defensive / Recession hedge
Business Model
What each company does and how it makes money
Walmart is the world's largest retailer operating a vast network of physical stores and e-commerce platforms. It generates revenue primarily through retail sales — with Walmart U.S. contributing about 65% of total revenue, Walmart International around 20%, and Sam's Club membership warehouse clubs roughly 15%. Its key competitive advantage is massive scale and supply chain efficiency, enabling everyday low prices that competitors struggle to match.
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.
Target is a large-format general merchandise retailer offering a curated assortment of essentials, apparel, home goods, and groceries at value prices. It generates revenue primarily through in-store sales (~95%) and digital channels (~5%), with additional income from credit card partnerships and in-store services like pharmacies and food courts. The company's competitive advantage lies in its "cheap chic" brand positioning—offering stylish private-label goods at affordable prices—and its efficient omnichannel fulfillment network that integrates stores as local distribution hubs.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 3 stocks. BestLagging
Financial Scorecard
TGT leads in 2 of 6 categories (Financial Metrics, Valuation Metrics). COST leads in 1 (Profitability & Efficiency). 3 tied.
Financial Metrics (TTM)
WMT is the larger business by revenue, generating $703.1B annually — 6.7x TGT's $105.4B. Profitability is closely matched — net margins range from 3.8% (TGT) to 3.0% (COST). On growth, COST holds the edge at +8.3% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | WMTWalmart Inc. | COSTCostco Wholesale … | TGTTarget Corporation |
|---|---|---|---|
| RevenueTrailing 12 months | $703.1B | $280.4B | $105.4B |
| EBITDAEarnings before interest/tax | $42.8B | $13.4B | $8.2B |
| Net IncomeAfter-tax profit | $22.9B | $8.3B | $4.0B |
| Free Cash FlowCash after capex | $15.3B | $9.0B | $5.5B |
| Gross MarginGross profit ÷ Revenue | +24.9% | +12.9% | +25.5% |
| Operating MarginEBIT ÷ Revenue | +4.1% | +3.8% | +4.8% |
| Net MarginNet income ÷ Revenue | +3.3% | +3.0% | +3.8% |
| FCF MarginFCF ÷ Revenue | +2.2% | +3.2% | +5.2% |
| Rev. Growth (YoY)Latest quarter vs prior year | +5.8% | +8.3% | -1.1% |
| EPS Growth (YoY)Latest quarter vs prior year | +35.1% | +11.4% | +13.5% |
Valuation Metrics
At 12.8x trailing earnings, TGT trades at a 77% valuation discount to COST's 55.5x P/E. Adjusting for growth (PEG ratio), TGT offers better value at 1.87x vs WMT's 4.26x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | WMTWalmart Inc. | COSTCostco Wholesale … | TGTTarget Corporation |
|---|---|---|---|
| Market CapShares × price | $1.02T | $448.0B | $51.8B |
| Enterprise ValueMkt cap + debt − cash | $1.08T | $442.0B | $70.8B |
| Trailing P/EPrice ÷ TTM EPS | 46.87x | 55.51x | 12.84x |
| Forward P/EPrice ÷ next-FY EPS est. | 43.76x | 49.80x | 15.61x |
| PEG RatioP/E ÷ EPS growth rate | 4.26x | 3.68x | 1.87x |
| EV / EBITDAEnterprise value multiple | 24.44x | 34.51x | 8.22x |
| Price / SalesMarket cap ÷ Revenue | 1.43x | 1.63x | 0.49x |
| Price / BookPrice ÷ Book value/share | 10.27x | 15.42x | 3.58x |
| Price / FCFMarket cap ÷ FCF | 24.53x | 57.17x | 11.58x |
Profitability & Efficiency
COST delivers a 27.4% return on equity — every $100 of shareholder capital generates $27 in annual profit, vs $22 for WMT. COST carries lower financial leverage with a 0.28x debt-to-equity ratio, signaling a more conservative balance sheet compared to TGT's 1.36x. On the Piotroski fundamental quality scale (0–9), COST scores 7/9 vs WMT's 6/9, reflecting strong financial health.
| Metric | WMTWalmart Inc. | COSTCostco Wholesale … | TGTTarget Corporation |
|---|---|---|---|
| ROE (TTM)Return on equity | +22.3% | +27.4% | +26.1% |
| ROA (TTM)Return on assets | +7.9% | +10.0% | +6.7% |
| ROICReturn on invested capital | +14.7% | +34.5% | +13.4% |
| ROCEReturn on capital employed | +17.5% | +27.9% | +15.4% |
| Piotroski ScoreFundamental quality 0–9 | 6 | 7 | 7 |
| Debt / EquityFinancial leverage | 0.67x | 0.28x | 1.36x |
| Net DebtTotal debt minus cash | $56.4B | -$6.0B | $19.0B |
| Cash & Equiv.Liquid assets | $10.7B | $14.2B | $869M |
| Total DebtShort + long-term debt | $67.1B | $8.2B | $19.9B |
| Interest CoverageEBIT ÷ Interest expense | 11.85x | 72.26x | 13.06x |
Total Returns (with DRIP)
A $10,000 investment in COST five years ago would be worth $31,542 today (with dividends reinvested), compared to $7,238 for TGT. Over the past 12 months, WMT leads with a +30.7% total return vs TGT's -4.8%. The 3-year compound annual growth rate (CAGR) favors WMT at 40.2% vs TGT's -9.0% — a key indicator of consistent wealth creation.
| Metric | WMTWalmart Inc. | COSTCostco Wholesale … | TGTTarget Corporation |
|---|---|---|---|
| YTD ReturnYear-to-date | +13.5% | +18.4% | +14.3% |
| 1-Year ReturnPast 12 months | +30.7% | -3.1% | -4.8% |
| 3-Year ReturnCumulative with dividends | +175.4% | +114.7% | -24.5% |
| 5-Year ReturnCumulative with dividends | +201.3% | +215.4% | -27.6% |
| 10-Year ReturnCumulative with dividends | +512.5% | +616.5% | +87.9% |
| CAGR (3Y)Annualised 3-year return | +40.2% | +29.0% | -9.0% |
Risk & Volatility
COST is the less volatile stock with a 0.44 beta — it tends to amplify market swings less than TGT's 0.98 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. WMT currently trades 95.0% from its 52-week high vs TGT's 89.6% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | WMTWalmart Inc. | COSTCostco Wholesale … | TGTTarget Corporation |
|---|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.53x | 0.44x | 0.98x |
| 52-Week HighHighest price in past year | $134.69 | $1067.08 | $127.06 |
| 52-Week LowLowest price in past year | $79.81 | $846.80 | $83.44 |
| % of 52W HighCurrent price vs 52-week peak | +95.0% | +94.7% | +89.6% |
| RSI (14)Momentum oscillator 0–100 | 49.9 | 53.4 | 56.6 |
| Avg Volume (50D)Average daily shares traded | 29.5M | 2.1M | 5.5M |
Analyst Outlook
Analyst consensus: WMT as "Buy", COST as "Buy", TGT as "Hold". Consensus price targets imply 6.5% upside for WMT (target: $136) vs -9.6% for TGT (target: $103). For income investors, TGT offers the higher dividend yield at 3.89% vs COST's 0.49%.
| Metric | WMTWalmart Inc. | COSTCostco Wholesale … | TGTTarget Corporation |
|---|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy | Hold |
| Price TargetConsensus 12-month target | $136.31 | $1048.21 | $102.87 |
| # AnalystsCovering analysts | 64 | 57 | 58 |
| Dividend YieldAnnual dividend ÷ price | +0.7% | +0.5% | +3.9% |
| Dividend StreakConsecutive years of raises | 37 | 0 | 21 |
| Dividend / ShareAnnual DPS | $0.94 | $4.91 | $4.43 |
| Buyback YieldShare repurchases ÷ mkt cap | +0.8% | +0.2% | +1.9% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| Walmart Inc. (WMT) | 100 | 321.15 | +221.1% |
| Costco Wholesale Co… (COST) | 100 | 313.24 | +213.2% |
| Target Corporation (TGT) | 100 | 100.43 | +0.4% |
Costco Wholesale Co… (COST) returned +215% over 5 years vs Target Corporation (TGT)'s -28%. A $10,000 investment in COST 5 years ago would be worth $31,542 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2017 | 2026 | Change |
|---|---|---|---|
| Walmart Inc. (WMT) | $485.9B | $713.2B | +46.8% |
| Costco Wholesale Co… (COST) | $129.0B | $275.2B | +113.3% |
| Target Corporation (TGT) | $72.7B | $106.6B | +46.6% |
Walmart Inc.'s revenue grew from $485.9B (2017) to $713.2B (2026) — a 4.4% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2017 | 2026 | Change |
|---|---|---|---|
| Walmart Inc. (WMT) | 2.8% | 3.1% | +9.3% |
| Costco Wholesale Co… (COST) | 2.1% | 2.9% | +41.7% |
| Target Corporation (TGT) | 4.0% | 3.8% | -4.2% |
Walmart Inc.'s net margin went from 3% (2017) to 3% (2026).
Chart 4P/E Ratio History — 10 Years
| Stock | 2017 | 2026 | Change |
|---|---|---|---|
| Walmart Inc. (WMT) | 22.5 | 46.9 | +108.4% |
| Costco Wholesale Co… (COST) | 30.6 | 47.4 | +54.9% |
| Target Corporation (TGT) | 12.3 | 15.3 | +24.4% |
Walmart Inc. has traded in a 23x–53x P/E range over 10 years; current trailing P/E is ~47x. 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 | 2017 | 2026 | Change |
|---|---|---|---|
| Walmart Inc. (WMT) | 1.46 | 2.73 | +87.0% |
| Costco Wholesale Co… (COST) | 6.08 | 18.21 | +199.5% |
| Target Corporation (TGT) | 5.29 | 8.86 | +67.5% |
Walmart Inc.'s EPS grew from $1.46 (2017) to $2.73 (2026) — a 7% CAGR.
Chart 6Free Cash Flow — 5 Years
Walmart Inc. generated $42B FCF in 2026 (+61% vs 2021). Costco Wholesale Corporation generated $8B FCF in 2025 (+46% vs 2021).
WMT vs COST vs TGT: Key Questions Answered
9 questions · data-driven answers · updated daily
01Is WMT or COST or TGT a better buy right now?
Target Corporation (TGT) offers the better valuation at 12.8x trailing P/E (15.6x forward), making it the more compelling value choice. Analysts rate Walmart Inc. (WMT) a "Buy" — based on 64 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 — WMT or COST or TGT?
On trailing P/E, Target Corporation (TGT) is the cheapest at 12.8x versus Costco Wholesale Corporation at 55.5x. On forward P/E, Target Corporation is actually cheaper at 15.6x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Target Corporation wins at 2.28x versus Walmart Inc.'s 3.98x.
03Which is the better long-term investment — WMT or COST or TGT?
Over the past 5 years, Costco Wholesale Corporation (COST) delivered a total return of +215.4%, compared to -27.6% for Target Corporation (TGT). 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 TGT's +87.9%. 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 — WMT or COST or TGT?
By beta (market sensitivity over 5 years), Costco Wholesale Corporation (COST) is the lower-risk stock at 0.44β versus Target Corporation's 0.98β — meaning TGT is approximately 121% 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 136% for Target Corporation — giving it more financial flexibility in a downturn.
05Which has better profit margins — WMT or COST or TGT?
Target Corporation (TGT) is the more profitable company, earning 3.8% net margin versus 2.9% for Costco Wholesale Corporation — meaning it keeps 3.8% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: TGT leads at 5.3% versus 3.8% for COST. At the gross margin level — before operating expenses — TGT leads at 25.8%, 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 WMT or COST or TGT more undervalued right now?
The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential. By this metric, Target Corporation (TGT) is the more undervalued stock at a PEG of 2.28x versus Walmart Inc.'s 3.98x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, Target Corporation (TGT) trades at 15.6x forward P/E versus 49.8x for Costco Wholesale Corporation — 34.2x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for WMT: 6.5% to $136.31.
07Which pays a better dividend — WMT or COST or TGT?
All stocks in this comparison pay dividends. Target Corporation (TGT) offers the highest yield at 3.9%, versus 0.5% for Costco Wholesale Corporation (COST).
08Is WMT or COST or TGT better for a retirement portfolio?
For long-horizon retirement investors, Walmart Inc. (WMT) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.53), 0.7% yield, +512.5% 10Y return). Both have compounded well over 10 years (WMT: +512.5%, TGT: +87.9%), 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 WMT and COST and TGT?
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. In terms of investment character: WMT is a mega-cap quality compounder stock; COST is a large-cap quality compounder stock; TGT is a mid-cap deep-value stock. WMT, TGT pay a dividend while COST does not, making them suitable for different income and tax situations. 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.
Find Stocks Like These
Explore pre-built screens for each stock's profile, or build a custom screen to find stocks that beat both.
- Sector: Consumer Defensive
- Market Cap > $100B
- Revenue Growth > 5%
- Dividend Yield > 0.5%