COST
Costco Wholesale Corporation
Discount Stores
Market Cap$398.87B
5Y Perf.+153.4%
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Side-by-side financial analysisCOST
TGT
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Stock Comparison
COST vs TGT
Revenue, margins, valuation, and 5-year total return — side by side.
TGT
Target Corporation
Discount Stores
Market Cap$72.23B
5Y Perf.+1.0%
COST vs TGT — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | COST | TGT |
|---|---|---|
| Industry | Discount Stores | Discount Stores |
| Market Cap | $398.87B | $72.23B |
| Revenue (TTM) | $293.59B | $107.70B |
| Net Income (TTM) | $8.84B | $4.39B |
| Gross Margin | 12.9% | 29.3% |
| Operating Margin | 3.8% | 5.6% |
| Forward P/E | 43.8x | 15.8x |
| Total Debt | $8.17B | $20.29B |
| Cash & Equiv. | $14.16B | $5.49B |
COST vs TGT — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
COST
TGT
| Stock | Sep 20 | Sep 26 | Return |
|---|---|---|---|
| Costco Wholesale Co… (COST) | 100 | 253.4 | +153.4% |
| Target Corporation (TGT) | 100 | 101.0 | +1.0% |
Price return only. Dividends and distributions are not included.
Quick Verdict: COST vs TGT
Each card shows where this stock fits in a portfolio — not just who wins on paper.
Bottom line: TGT leads in 4 of 7 categories, making it the strongest pick for valuation and capital efficiency and profitability and margin quality. Costco Wholesale Corporation is the stronger pick specifically for growth and revenue expansion and capital preservation and lower volatility. As sector peers, any of these can serve as alternatives in the same allocation.
🥇TGT emerged as the overall leader. Track its performance:
COST
Costco Wholesale Corporation
The Growth Play
COST is the clearest fit if your priority is growth exposure and long-term compounding.
- Rev growth 8.2%, EPS growth 10.0%, 3Y rev CAGR 6.6%
- 5.3% 10Y total return vs TGT's 182.6%
- Lower volatility, beta -0.14, Low D/E 28.0%, current ratio 1.03x
Best for: growth exposure and long-term compounding
TGT
Target Corporation
The Income Pick
TGT carries the broadest edge in this set and is the clearest fit for income & stability.
- Dividend streak 43 yrs, beta 0.45, yield 2.8%
- Lower P/E (15.7x vs 43.6x)
- 4.1% margin vs COST's 3.0%
Best for: income & stability
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | COST | 8.2% revenue growth vs TGT's -1.7% |
| Value | TGT | Lower P/E (15.7x vs 43.6x) |
| Quality / Margins | TGT | 4.1% margin vs COST's 3.0% |
| Stability / Safety | COST | Lower D/E ratio (28.0% vs 125.5%) |
| Dividends | TGT | 2.8% yield, 43-year raise streak, vs COST's 0.5% |
| Momentum (1Y) | TGT | +89.0% vs COST's -4.1% |
| Efficiency (ROA) | COST | 10.7% ROA vs TGT's 7.4%, ROIC 34.5% vs 12.6% |
COST vs TGT — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
FY 2025
FY 2025
COST vs TGT — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
BEST OVERALLTGTLAGGINGCOST
COSTCostco Wholesale Corp…
2leads
TGTTarget Corporation
3leads
6 Total Categories
CATEGORYLEADERvs COSTMETRICS WON
Income & Cash FlowRevenue, margins, and cash flow strength
TGT5/6
Valuation MetricsMultiples, price ratios, and targets
TGT6/6
Profitability & EfficiencyROE, ROIC, leverage, and quality scores
COST9/9
Total Returns1Y, 3Y, 5Y total returns with dividends
COST4/6
Risk & VolatilityBeta, volatility, and downside exposure
Tied
—
Analyst OutlookRatings, price targets, and dividends
TGT2/2
Income & Cash Flow (Last 12 Months)
TGT leads this category, winning 5 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
COST is the larger business by revenue, generating $293.6B annually — 2.7x TGT's $107.7B. Profitability is closely matched — net margins range from 4.1% (TGT) to 3.0% (COST). On growth, COST holds the edge at +11.6% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | COSTCostco Wholesale … | TGTTarget Corporation |
|---|---|---|
| RevenueTrailing 12 months | $293.6B | $107.7B |
| EBITDAEarnings before interest/tax | $13.8B | $8.4B |
| Net IncomeAfter-tax profit | $8.8B | $4.4B |
| Free Cash FlowCash after capex | $8.8B | $7.0B |
| Gross MarginGross profit ÷ Revenue | +12.9% | +29.3% |
| Operating MarginEBIT ÷ Revenue | +3.8% | +5.6% |
| Net MarginNet income ÷ Revenue | +3.0% | +4.1% |
| FCF MarginFCF ÷ Revenue | +3.0% | +6.5% |
| Rev. Growth (YoY)Latest quarter vs prior year | +11.6% | +5.3% |
| EPS Growth (YoY)Latest quarter vs prior year | +15.2% | +101.0% |
TGT leads this category, winning 5 of 6 comparable metrics.
Valuation Metrics
TGT leads this category, winning 6 of 6 comparable metrics.
Valuation Metrics
At 19.6x trailing earnings, TGT trades at a 60% valuation discount to COST's 49.4x P/E. On an enterprise value basis, TGT's 10.5x EV/EBITDA is more attractive than COST's 30.7x.
| Metric | COSTCostco Wholesale … | TGTTarget Corporation |
|---|---|---|
| Market CapShares × price | $398.9B | $72.2B |
| Enterprise ValueMkt cap + debt − cash | $392.9B | $87.0B |
| Trailing P/EPrice ÷ TTM EPS | 49.39x | 19.56x |
| Forward P/EPrice ÷ next-FY EPS est. | 43.84x | 15.78x |
| PEG RatioP/E ÷ EPS growth rate | 3.27x | — |
| EV / EBITDAEnterprise value multiple | 30.67x | 10.55x |
| Price / SalesMarket cap ÷ Revenue | 1.45x | 0.69x |
| Price / BookPrice ÷ Book value/share | 13.72x | 4.48x |
| Price / FCFMarket cap ÷ FCF | 50.90x | 25.48x |
TGT leads this category, winning 6 of 6 comparable metrics.
Profitability & Efficiency
COST leads this category, winning 9 of 9 comparable metrics.
Profitability & Efficiency
COST delivers a 28.3% return on equity — every $100 of shareholder capital generates $28 in annual profit, vs $27 for TGT. COST carries lower financial leverage with a 0.28x debt-to-equity ratio, signaling a more conservative balance sheet compared to TGT's 1.26x. On the Piotroski fundamental quality scale (0–9), COST scores 7/9 vs TGT's 6/9, reflecting strong financial health.
| Metric | COSTCostco Wholesale … | TGTTarget Corporation |
|---|---|---|
| ROE (TTM)Return on equity | +28.3% | +26.7% |
| ROA (TTM)Return on assets | +10.7% | +7.4% |
| ROICReturn on invested capital | +34.5% | +12.6% |
| ROCEReturn on capital employed | +27.9% | +13.6% |
| Piotroski ScoreFundamental quality 0–9 | 7 | 6 |
| Debt / EquityFinancial leverage | 0.28x | 1.26x |
| Net DebtTotal debt minus cash | -$6.0B | $14.8B |
| Cash & Equiv.Liquid assets | $14.2B | $5.5B |
| Total DebtShort + long-term debt | $8.2B | $20.3B |
| Interest CoverageEBIT ÷ Interest expense | 81.54x | 14.19x |
COST leads this category, winning 9 of 9 comparable metrics.
Total Returns (Dividends Reinvested)
COST leads this category, winning 4 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in COST five years ago would be worth $20,703 today (with dividends reinvested), compared to $7,472 for TGT. Over the past 12 months, TGT leads with a +89.0% total return vs COST's -4.1%. The 3-year compound annual growth rate (CAGR) favors COST at 18.5% vs TGT's 15.3% — a key indicator of consistent wealth creation.
| Metric | COSTCostco Wholesale … | TGTTarget Corporation |
|---|---|---|
| YTD ReturnYear-to-date | +5.8% | +61.6% |
| 1-Year ReturnPast 12 months | -4.1% | +89.0% |
| 3-Year ReturnCumulative with dividends | +66.4% | +53.2% |
| 5-Year ReturnCumulative with dividends | +107.0% | -25.3% |
| 10-Year ReturnCumulative with dividends | +530.5% | +182.6% |
| CAGR (3Y)Annualised 3-year return | +18.5% | +15.3% |
COST leads this category, winning 4 of 6 comparable metrics.
Risk & Volatility
Evenly matched — COST and TGT each lead in 1 of 2 comparable metrics.
Risk & Volatility
COST is the less volatile stock with a -0.14 beta — it tends to amplify market swings less than TGT's 0.45 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. TGT currently trades 93.1% from its 52-week high vs COST's 82.0% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | COSTCostco Wholesale … | TGTTarget Corporation |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | -0.14x | 0.45x |
| 52-Week HighHighest price in past year | $1096.50 | $170.75 |
| 52-Week LowLowest price in past year | $846.80 | $83.44 |
| % of 52W HighCurrent price vs 52-week peak | +82.0% | +93.1% |
| RSI (14)Momentum oscillator 0–100 | 37.9 | 51.0 |
| Avg Volume (50D)Average daily shares traded | 2.0M | 3.9M |
Evenly matched — COST and TGT each lead in 1 of 2 comparable metrics.
Analyst Outlook
TGT leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
Wall Street rates COST as "Buy" and TGT as "Buy". Consensus price targets imply 22.5% upside for COST (target: $1102) vs 4.5% for TGT (target: $166). For income investors, TGT offers the higher dividend yield at 2.83% vs COST's 0.55%.
| Metric | COSTCostco Wholesale … | TGTTarget Corporation |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $1101.78 | $166.10 |
| # AnalystsCovering analysts | 59 | 60 |
| Dividend YieldAnnual dividend ÷ price | +0.5% | +2.8% |
| Dividend StreakConsecutive years of raises | 22 | 43 |
| Dividend / ShareAnnual DPS | $4.91 | $4.51 |
| Buyback YieldShare repurchases ÷ mkt cap | +0.2% | +0.6% |
TGT leads this category, winning 2 of 2 comparable metrics.
Key Takeaway
TGT leads in 3 of 6 categories (Income & Cash Flow, Valuation Metrics). COST leads in 2 (Profitability & Efficiency, Total Returns). 1 tied.
Best OverallTarget Corporation (TGT)Leads 3 of 6 categories
Custom Comparison: COST vs TGT
Compare on any lens — Growth, Value, Income, or pick from 130+ individual metrics.
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COST vs TGT: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is COST or TGT a better buy right now?
For growth investors, Costco Wholesale Corporation (COST) is the stronger pick with 8.
2% revenue growth year-over-year, versus -1. 7% for Target Corporation (TGT). Target Corporation (TGT) offers the better valuation at 19. 6x trailing P/E (15. 8x forward), making it the more compelling value choice. Analysts rate Costco Wholesale Corporation (COST) a "Buy" — based on 59 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 — COST or TGT?
On trailing P/E, Target Corporation (TGT) is the cheapest at 19.
6x versus Costco Wholesale Corporation at 49. 4x. On forward P/E, Target Corporation is actually cheaper at 15. 8x.
03Which is the better long-term investment — COST or TGT?
Over the past 5 years, Costco Wholesale Corporation (COST) delivered a total return of +107.
0%, compared to -25. 3% for Target Corporation (TGT). Over 10 years, the gap is even starker: COST returned +530. 5% versus TGT's +182. 6%. 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 — COST or TGT?
By beta (market sensitivity over 5 years), Costco Wholesale Corporation (COST) is the lower-risk stock at -0.
14β versus Target Corporation's 0. 45β — meaning TGT is approximately -429% 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 126% for Target Corporation — giving it more financial flexibility in a downturn.
05Which is growing faster — COST or TGT?
By revenue growth (latest reported year), Costco Wholesale Corporation (COST) is pulling ahead at 8.
2% versus -1. 7% for Target Corporation (TGT). On earnings-per-share growth, the picture is similar: Costco Wholesale Corporation grew EPS 10. 0% year-over-year, compared to -8. 2% for Target Corporation. Over a 3-year CAGR, COST leads at 6. 6% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.
06Which has better profit margins — COST or TGT?
Target Corporation (TGT) is the more profitable company, earning 3.
5% net margin versus 2. 9% for Costco Wholesale Corporation — meaning it keeps 3. 5% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: TGT leads at 4. 9% versus 3. 8% for COST. At the gross margin level — before operating expenses — TGT leads at 27. 9%, 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.
07Is COST or TGT more undervalued right now?
On forward earnings alone, Target Corporation (TGT) trades at 15.
8x forward P/E versus 43. 8x for Costco Wholesale Corporation — 28. 1x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for COST: 22. 5% to $1101. 78.
08Which pays a better dividend — COST or TGT?
All stocks in this comparison pay dividends.
Target Corporation (TGT) offers the highest yield at 2. 8%, versus 0. 5% for Costco Wholesale Corporation (COST).
09Is COST or TGT 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.
14), 0. 5% yield, +530. 5% 10Y return). Both have compounded well over 10 years (COST: +530. 5%, TGT: +182. 6%), 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.
10What are the main differences between 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.
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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