WMT vs COST

For growth investors, Costco Wholesale Corporation (COST) is the stronger pick with 8.

2% revenue growth year-over-year, versus 4. 7% for Walmart Inc. (WMT). Walmart Inc. (WMT) offers the better valuation at 41. 0x trailing P/E (38. 5x forward), making it the more compelling value choice. Analysts rate Walmart Inc. (WMT) a "Buy" — based on 66 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.

On trailing P/E, Walmart Inc.

(WMT) is the cheapest at 41. 0x versus Costco Wholesale Corporation at 52. 3x. On forward P/E, Walmart Inc. is actually cheaper at 38. 5x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Costco Wholesale Corporation wins at 3. 07x versus Walmart Inc. 's 3. 50x.

Over the past 5 years, Walmart Inc.

(WMT) delivered a total return of +148. 3%, compared to +147. 7% for Costco Wholesale Corporation (COST). Over 10 years, the gap is even starker: COST returned +555. 0% versus WMT's +390. 1%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Costco Wholesale Corporation (COST) is the lower-risk stock at -0.

08β versus Walmart Inc. 's -0. 03β — meaning WMT is approximately -67% 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 63% for Walmart Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Costco Wholesale Corporation (COST) is pulling ahead at 8.

2% versus 4. 7% for Walmart Inc. (WMT). On earnings-per-share growth, the picture is similar: Walmart Inc. grew EPS 13. 3% year-over-year, compared to 10. 0% for Costco Wholesale 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.

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.

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. 07x versus Walmart Inc. 's 3. 50x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, Walmart Inc. (WMT) trades at 38. 5x forward P/E versus 46. 3x for Costco Wholesale Corporation — 7. 8x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for WMT: 24. 7% to $139. 44.

All stocks in this comparison pay dividends.

Walmart Inc. (WMT) offers the highest yield at 0. 8%, versus 0. 5% for Costco Wholesale Corporation (COST).

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.

08), 0. 5% yield, +555. 0% 10Y return). Both have compounded well over 10 years (COST: +555. 0%, WMT: +390. 1%), 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.

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.