Comprehensive Stock Comparison
Compare PriceSmart, Inc. (PSMT) 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 | COST | 8.2% revenue growth vs PSMT's 7.2% |
| Value | PSMT | Lower P/E (28.7x vs 49.8x), PEG 2.12 vs 3.30 |
| Quality / Margins | COST | 3.0% net margin vs PSMT's 2.7% |
| Stability / Safety | PSMT | Beta 0.39 vs COST's 0.44, lower leverage |
| Dividends | PSMT | 0.8% yield, vs COST's 0.5% |
| Momentum (1Y) | PSMT | +74.5% vs COST's -3.1% |
| Efficiency (ROA) | COST | 10.0% ROA vs PSMT's 6.2%, ROIC 34.5% vs 13.8% |
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
PriceSmart operates membership-based warehouse clubs in Latin America and the Caribbean, offering U.S.-style bulk shopping for groceries, household goods, and services like optical and tire centers. It generates revenue primarily from membership fees — which provide recurring income — and merchandise sales across its physical clubs and Click & Go e-commerce platform. The company's moat lies in its first-mover advantage and established brand recognition as the dominant membership warehouse operator in underserved emerging markets where Costco and Sam's Club have limited presence.
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
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
PSMT leads in 4 of 6 categories (Valuation Metrics, Total Returns). COST leads in 1 (Profitability & Efficiency). 1 tied.
Financial Metrics (TTM)
COST is the larger business by revenue, generating $280.4B annually — 52.0x PSMT's $5.4B. Profitability is closely matched — net margins range from 3.0% (COST) to 2.7% (PSMT).
| Metric | PSMTPriceSmart, Inc. | COSTCostco Wholesale … |
|---|---|---|
| RevenueTrailing 12 months | $5.4B | $280.4B |
| EBITDAEarnings before interest/tax | $332M | $13.4B |
| Net IncomeAfter-tax profit | $147M | $8.3B |
| Free Cash FlowCash after capex | $125M | $9.0B |
| Gross MarginGross profit ÷ Revenue | +17.4% | +12.9% |
| Operating MarginEBIT ÷ Revenue | +4.5% | +3.8% |
| Net MarginNet income ÷ Revenue | +2.7% | +3.0% |
| FCF MarginFCF ÷ Revenue | +2.3% | +3.2% |
| Rev. Growth (YoY)Latest quarter vs prior year | +9.9% | +8.3% |
| EPS Growth (YoY)Latest quarter vs prior year | +6.6% | +11.4% |
Valuation Metrics
At 32.1x trailing earnings, PSMT trades at a 42% valuation discount to COST's 55.5x P/E. Adjusting for growth (PEG ratio), PSMT offers better value at 2.36x vs COST's 3.68x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | PSMTPriceSmart, Inc. | COSTCostco Wholesale … |
|---|---|---|
| Market CapShares × price | $5.1B | $448.0B |
| Enterprise ValueMkt cap + debt − cash | $5.1B | $442.0B |
| Trailing P/EPrice ÷ TTM EPS | 32.08x | 55.51x |
| Forward P/EPrice ÷ next-FY EPS est. | 28.74x | 49.80x |
| PEG RatioP/E ÷ EPS growth rate | 2.36x | 3.68x |
| EV / EBITDAEnterprise value multiple | 15.88x | 34.51x |
| Price / SalesMarket cap ÷ Revenue | 0.96x | 1.63x |
| Price / BookPrice ÷ Book value/share | 3.73x | 15.42x |
| Price / FCFMarket cap ÷ FCF | 49.16x | 57.17x |
Profitability & Efficiency
COST delivers a 27.4% return on equity — every $100 of shareholder capital generates $27 in annual profit, vs $11 for PSMT. PSMT carries lower financial leverage with a 0.26x debt-to-equity ratio, signaling a more conservative balance sheet compared to COST's 0.28x. On the Piotroski fundamental quality scale (0–9), COST scores 7/9 vs PSMT's 5/9, reflecting strong financial health.
| Metric | PSMTPriceSmart, Inc. | COSTCostco Wholesale … |
|---|---|---|
| ROE (TTM)Return on equity | +11.3% | +27.4% |
| ROA (TTM)Return on assets | +6.2% | +10.0% |
| ROICReturn on invested capital | +13.8% | +34.5% |
| ROCEReturn on capital employed | +16.4% | +27.9% |
| Piotroski ScoreFundamental quality 0–9 | 5 | 7 |
| Debt / EquityFinancial leverage | 0.26x | 0.28x |
| Net DebtTotal debt minus cash | $77M | -$6.0B |
| Cash & Equiv.Liquid assets | $252M | $14.2B |
| Total DebtShort + long-term debt | $329M | $8.2B |
| Interest CoverageEBIT ÷ Interest expense | 16.96x | 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 $16,275 for PSMT. Over the past 12 months, PSMT leads with a +74.5% total return vs COST's -3.1%. The 3-year compound annual growth rate (CAGR) favors PSMT at 31.2% vs COST's 29.0% — a key indicator of consistent wealth creation.
| Metric | PSMTPriceSmart, Inc. | COSTCostco Wholesale … |
|---|---|---|
| YTD ReturnYear-to-date | +25.9% | +18.4% |
| 1-Year ReturnPast 12 months | +74.5% | -3.1% |
| 3-Year ReturnCumulative with dividends | +126.1% | +114.7% |
| 5-Year ReturnCumulative with dividends | +62.7% | +215.4% |
| 10-Year ReturnCumulative with dividends | +108.0% | +616.5% |
| CAGR (3Y)Annualised 3-year return | +31.2% | +29.0% |
Risk & Volatility
PSMT is the less volatile stock with a 0.39 beta — it tends to amplify market swings less than COST's 0.44 beta. A beta below 1.0 means the stock typically moves less than the S&P 500.
| Metric | PSMTPriceSmart, Inc. | COSTCostco Wholesale … |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.39x | 0.44x |
| 52-Week HighHighest price in past year | $158.44 | $1067.08 |
| 52-Week LowLowest price in past year | $81.25 | $846.80 |
| % of 52W HighCurrent price vs 52-week peak | +97.6% | +94.7% |
| RSI (14)Momentum oscillator 0–100 | 61.0 | 53.4 |
| Avg Volume (50D)Average daily shares traded | 178K | 2.1M |
Analyst Outlook
Wall Street rates PSMT as "Hold" and COST as "Buy". Consensus price targets imply 3.7% upside for COST (target: $1048) vs -46.0% for PSMT (target: $84). For income investors, PSMT offers the higher dividend yield at 0.83% vs COST's 0.49%.
| Metric | PSMTPriceSmart, Inc. | COSTCostco Wholesale … |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Buy |
| Price TargetConsensus 12-month target | $83.50 | $1048.21 |
| # AnalystsCovering analysts | 8 | 57 |
| Dividend YieldAnnual dividend ÷ price | +0.8% | +0.5% |
| Dividend StreakConsecutive years of raises | 0 | 0 |
| Dividend / ShareAnnual DPS | $1.29 | $4.91 |
| Buyback YieldShare repurchases ÷ mkt cap | +0.1% | +0.2% |
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 |
|---|---|---|---|
| PriceSmart, Inc. (PSMT) | 100 | 248.85 | +148.8% |
| Costco Wholesale Co… (COST) | 100 | 313.24 | +213.2% |
Costco Wholesale Co… (COST) returned +215% over 5 years vs PriceSmart, Inc. (PSMT)'s +63%. 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 |
|---|---|---|---|
| PriceSmart, Inc. (PSMT) | $2.9B | $5.3B | +81.4% |
| Costco Wholesale Co… (COST) | $118.7B | $275.2B | +131.8% |
PriceSmart, Inc.'s revenue grew from $2.9B (2016) to $5.3B (2025) — a 6.8% CAGR. 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 |
|---|---|---|---|
| PriceSmart, Inc. (PSMT) | 3.0% | 2.7% | -8.5% |
| Costco Wholesale Co… (COST) | 2.0% | 2.9% | +48.7% |
PriceSmart, Inc.'s net margin went from 3% (2016) to 3% (2025). Costco Wholesale Corporation's net margin went from 2% (2016) to 3% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| PriceSmart, Inc. (PSMT) | 28.9 | 25.5 | -11.8% |
| Costco Wholesale Co… (COST) | 30.6 | 47.4 | +54.9% |
PriceSmart, Inc. has traded in a 18x–36x P/E range over 9 years; current trailing P/E is ~32x. 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 |
|---|---|---|---|
| PriceSmart, Inc. (PSMT) | 2.92 | 4.82 | +65.1% |
| Costco Wholesale Co… (COST) | 5.33 | 18.21 | +241.7% |
PriceSmart, Inc.'s EPS grew from $2.92 (2016) to $4.82 (2025) — a 6% CAGR. Costco Wholesale Corporation's EPS grew from $5.33 (2016) to $18.21 (2025) — a 15% CAGR.
Chart 6Free Cash Flow — 5 Years
PriceSmart, Inc. generated $103M FCF in 2025 (+637% vs 2021). Costco Wholesale Corporation generated $8B FCF in 2025 (+46% vs 2021).
PSMT vs COST: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is PSMT or COST a better buy right now?
PriceSmart, Inc. (PSMT) offers the better valuation at 32.1x trailing P/E (28.7x 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 — PSMT or COST?
On trailing P/E, PriceSmart, Inc. (PSMT) is the cheapest at 32.1x versus Costco Wholesale Corporation at 55.5x. On forward P/E, PriceSmart, Inc. is actually cheaper at 28.7x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: PriceSmart, Inc. wins at 2.12x versus Costco Wholesale Corporation's 3.30x.
03Which is the better long-term investment — PSMT or COST?
Over the past 5 years, Costco Wholesale Corporation (COST) delivered a total return of +215.4%, compared to +62.7% for PriceSmart, Inc. (PSMT). 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 PSMT's +108.0%. 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 — PSMT or COST?
By beta (market sensitivity over 5 years), PriceSmart, Inc. (PSMT) is the lower-risk stock at 0.39β versus Costco Wholesale Corporation's 0.44β — meaning COST is approximately 13% more volatile than PSMT relative to the S&P 500. On balance sheet safety, PriceSmart, Inc. (PSMT) carries a lower debt/equity ratio of 26% versus 28% for Costco Wholesale Corporation — giving it more financial flexibility in a downturn.
05Which has better profit margins — PSMT or COST?
Costco Wholesale Corporation (COST) is the more profitable company, earning 2.9% net margin versus 2.7% for PriceSmart, Inc. — meaning it keeps 2.9% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: PSMT leads at 4.5% versus 3.8% for COST. At the gross margin level — before operating expenses — PSMT leads at 17.4%, 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 PSMT or COST 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, PriceSmart, Inc. (PSMT) is the more undervalued stock at a PEG of 2.12x versus Costco Wholesale Corporation's 3.30x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, PriceSmart, Inc. (PSMT) trades at 28.7x forward P/E versus 49.8x for Costco Wholesale Corporation — 21.1x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for COST: 3.7% to $1048.21.
07Which pays a better dividend — PSMT or COST?
All stocks in this comparison pay dividends. PriceSmart, Inc. (PSMT) offers the highest yield at 0.8%, versus 0.5% for Costco Wholesale Corporation (COST).
08Is PSMT or COST better for a retirement portfolio?
For long-horizon retirement investors, PriceSmart, Inc. (PSMT) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.39), 0.8% yield, +108.0% 10Y return). Both have compounded well over 10 years (PSMT: +108.0%, 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 PSMT 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. PSMT 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.
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- Sector: Consumer Defensive
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- Sector: Consumer Defensive
- Market Cap > $100B
- Revenue Growth > 5%
- Dividend Yield > 0.5%