Comprehensive Stock Comparison
Compare Costco Wholesale Corporation (COST) vs Walmart Inc. (WMT) 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 WMT's 4.7% |
| Value | WMT | Lower P/E (43.8x vs 49.8x) |
| Quality / Margins | WMT | 3.3% net margin vs COST's 3.0% |
| Stability / Safety | COST | Beta 0.44 vs WMT's 0.53, lower leverage |
| Dividends | WMT | 0.7% yield, 37-year raise streak, vs COST's 0.5% |
| Momentum (1Y) | WMT | +30.7% vs COST's -3.1% |
| Efficiency (ROA) | COST | 10.0% ROA vs WMT's 7.9%, ROIC 34.5% vs 14.7% |
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
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.
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.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
WMT leads in 3 of 6 categories (Financial Metrics, Valuation Metrics). COST leads in 1 (Profitability & Efficiency). 2 tied.
Financial Metrics (TTM)
WMT is the larger business by revenue, generating $703.1B annually — 2.5x COST's $280.4B. Profitability is closely matched — net margins range from 3.3% (WMT) to 3.0% (COST).
| Metric | COSTCostco Wholesale … | WMTWalmart Inc. |
|---|---|---|
| RevenueTrailing 12 months | $280.4B | $703.1B |
| EBITDAEarnings before interest/tax | $13.4B | $42.8B |
| Net IncomeAfter-tax profit | $8.3B | $22.9B |
| Free Cash FlowCash after capex | $9.0B | $15.3B |
| Gross MarginGross profit ÷ Revenue | +12.9% | +24.9% |
| Operating MarginEBIT ÷ Revenue | +3.8% | +4.1% |
| Net MarginNet income ÷ Revenue | +3.0% | +3.3% |
| FCF MarginFCF ÷ Revenue | +3.2% | +2.2% |
| Rev. Growth (YoY)Latest quarter vs prior year | +8.3% | +5.8% |
| EPS Growth (YoY)Latest quarter vs prior year | +11.4% | +35.1% |
Valuation Metrics
At 46.9x trailing earnings, WMT trades at a 16% valuation discount to COST's 55.5x P/E. Adjusting for growth (PEG ratio), COST offers better value at 3.68x vs WMT's 4.26x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | COSTCostco Wholesale … | WMTWalmart Inc. |
|---|---|---|
| Market CapShares × price | $448.0B | $1.02T |
| Enterprise ValueMkt cap + debt − cash | $442.0B | $1.08T |
| Trailing P/EPrice ÷ TTM EPS | 55.51x | 46.87x |
| Forward P/EPrice ÷ next-FY EPS est. | 49.80x | 43.76x |
| PEG RatioP/E ÷ EPS growth rate | 3.68x | 4.26x |
| EV / EBITDAEnterprise value multiple | 34.51x | 24.44x |
| Price / SalesMarket cap ÷ Revenue | 1.63x | 1.43x |
| Price / BookPrice ÷ Book value/share | 15.42x | 10.27x |
| Price / FCFMarket cap ÷ FCF | 57.17x | 24.53x |
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 WMT's 0.67x. On the Piotroski fundamental quality scale (0–9), COST scores 7/9 vs WMT's 6/9, reflecting strong financial health.
| Metric | COSTCostco Wholesale … | WMTWalmart Inc. |
|---|---|---|
| ROE (TTM)Return on equity | +27.4% | +22.3% |
| ROA (TTM)Return on assets | +10.0% | +7.9% |
| ROICReturn on invested capital | +34.5% | +14.7% |
| ROCEReturn on capital employed | +27.9% | +17.5% |
| Piotroski ScoreFundamental quality 0–9 | 7 | 6 |
| Debt / EquityFinancial leverage | 0.28x | 0.67x |
| Net DebtTotal debt minus cash | -$6.0B | $56.4B |
| Cash & Equiv.Liquid assets | $14.2B | $10.7B |
| Total DebtShort + long-term debt | $8.2B | $67.1B |
| Interest CoverageEBIT ÷ Interest expense | 72.26x | 11.85x |
Total Returns (with DRIP)
A $10,000 investment in COST five years ago would be worth $31,542 today (with dividends reinvested), compared to $30,135 for WMT. Over the past 12 months, WMT leads with a +30.7% total return vs COST's -3.1%. The 3-year compound annual growth rate (CAGR) favors WMT at 40.2% vs COST's 29.0% — a key indicator of consistent wealth creation.
| Metric | COSTCostco Wholesale … | WMTWalmart Inc. |
|---|---|---|
| YTD ReturnYear-to-date | +18.4% | +13.5% |
| 1-Year ReturnPast 12 months | -3.1% | +30.7% |
| 3-Year ReturnCumulative with dividends | +114.7% | +175.4% |
| 5-Year ReturnCumulative with dividends | +215.4% | +201.3% |
| 10-Year ReturnCumulative with dividends | +616.5% | +512.5% |
| CAGR (3Y)Annualised 3-year return | +29.0% | +40.2% |
Risk & Volatility
COST is the less volatile stock with a 0.44 beta — it tends to amplify market swings less than WMT's 0.53 beta. A beta below 1.0 means the stock typically moves less than the S&P 500.
| Metric | COSTCostco Wholesale … | WMTWalmart Inc. |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.44x | 0.53x |
| 52-Week HighHighest price in past year | $1067.08 | $134.69 |
| 52-Week LowLowest price in past year | $846.80 | $79.81 |
| % of 52W HighCurrent price vs 52-week peak | +94.7% | +95.0% |
| RSI (14)Momentum oscillator 0–100 | 53.4 | 49.9 |
| Avg Volume (50D)Average daily shares traded | 2.1M | 29.5M |
Analyst Outlook
Wall Street rates COST as "Buy" and WMT as "Buy". Consensus price targets imply 6.5% upside for WMT (target: $136) vs 3.7% for COST (target: $1048). For income investors, WMT offers the higher dividend yield at 0.73% vs COST's 0.49%.
| Metric | COSTCostco Wholesale … | WMTWalmart Inc. |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $1048.21 | $136.31 |
| # AnalystsCovering analysts | 57 | 64 |
| Dividend YieldAnnual dividend ÷ price | +0.5% | +0.7% |
| Dividend StreakConsecutive years of raises | 0 | 37 |
| Dividend / ShareAnnual DPS | $4.91 | $0.94 |
| Buyback YieldShare repurchases ÷ mkt cap | +0.2% | +0.8% |
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 |
|---|---|---|---|
| Costco Wholesale Co… (COST) | 100 | 313.24 | +213.2% |
| Walmart Inc. (WMT) | 100 | 321.15 | +221.1% |
Costco Wholesale Co… (COST) returned +215% over 5 years vs Walmart Inc. (WMT)'s +201%. 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 |
|---|---|---|---|
| Costco Wholesale Co… (COST) | $129.0B | $275.2B | +113.3% |
| Walmart Inc. (WMT) | $485.9B | $713.2B | +46.8% |
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 |
|---|---|---|---|
| Costco Wholesale Co… (COST) | 2.1% | 2.9% | +41.7% |
| Walmart Inc. (WMT) | 2.8% | 3.1% | +9.3% |
Walmart Inc.'s net margin went from 3% (2017) to 3% (2026).
Chart 4P/E Ratio History — 10 Years
| Stock | 2017 | 2026 | Change |
|---|---|---|---|
| Costco Wholesale Co… (COST) | 30.6 | 47.4 | +54.9% |
| Walmart Inc. (WMT) | 22.5 | 46.9 | +108.4% |
Costco Wholesale Corporation has traded in a 29x–55x P/E range over 9 years; current trailing P/E is ~56x. Walmart Inc. has traded in a 23x–53x P/E range over 10 years; current trailing P/E is ~47x.
Chart 5EPS Growth — 10 Years
| Stock | 2017 | 2026 | Change |
|---|---|---|---|
| Costco Wholesale Co… (COST) | 6.08 | 18.21 | +199.5% |
| Walmart Inc. (WMT) | 1.46 | 2.73 | +87.0% |
Walmart Inc.'s EPS grew from $1.46 (2017) to $2.73 (2026) — a 7% CAGR.
Chart 6Free Cash Flow — 5 Years
Costco Wholesale Corporation generated $8B FCF in 2025 (+46% vs 2021). Walmart Inc. generated $42B FCF in 2026 (+61% vs 2021).
COST vs WMT: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is COST or WMT a better buy right now?
Walmart Inc. (WMT) offers the better valuation at 46.9x trailing P/E (43.8x forward), making it the more compelling value choice. Analysts rate Costco Wholesale Corporation (COST) a "Buy" — based on 57 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 WMT?
On trailing P/E, Walmart Inc. (WMT) is the cheapest at 46.9x versus Costco Wholesale Corporation at 55.5x. On forward P/E, Walmart Inc. is actually cheaper at 43.8x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Costco Wholesale Corporation wins at 3.30x versus Walmart Inc.'s 3.98x.
03Which is the better long-term investment — COST or WMT?
Over the past 5 years, Costco Wholesale Corporation (COST) delivered a total return of +215.4%, compared to +201.3% for Walmart Inc. (WMT). 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 WMT's +512.5%. 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 WMT?
By beta (market sensitivity over 5 years), Costco Wholesale Corporation (COST) is the lower-risk stock at 0.44β versus Walmart Inc.'s 0.53β — meaning WMT is approximately 19% 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 67% for Walmart Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — COST or WMT?
Walmart Inc. (WMT) is the more profitable company, earning 3.1% net margin versus 2.9% for Costco Wholesale Corporation — meaning it keeps 3.1% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: WMT leads at 4.2% versus 3.8% for COST. At the gross margin level — before operating expenses — WMT leads at 24.9%, 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.
06Is COST or WMT 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, Costco Wholesale Corporation (COST) is the more undervalued stock at a PEG of 3.30x versus Walmart Inc.'s 3.98x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, Walmart Inc. (WMT) trades at 43.8x forward P/E versus 49.8x for Costco Wholesale Corporation — 6.0x 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 — COST or WMT?
All stocks in this comparison pay dividends. Walmart Inc. (WMT) offers the highest yield at 0.7%, versus 0.5% for Costco Wholesale Corporation (COST).
08Is COST or WMT 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%, COST: +616.5%), 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 COST and WMT?
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. WMT pays 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%