Costco vs Walmart, side by side
Both are giant US retailers offering groceries and household goods at low prices, but they make their money differently. Costco is a membership warehouse club - shoppers pay an annual fee to enter, and much of Costco's profit comes from those fees rather than product mark-ups, which it keeps deliberately thin. Walmart is the huge everyday supermarket and general retailer, now also growing online sales and advertising.
On our factor screen it looks strongest on growth and income, and weakest on value.
On our factor screen it looks strongest on income and growth, and weakest on value.
The numbers, side by side
| Measure |  Costco Wholesale Corporation |  Walmart |
|---|---|---|
| Price | $951.89 | $111.20 |
| Market cap: The company's total value on the stock market - share price times the number of shares. Big = 'large-cap', small = 'small-cap'. | $422.14B | $884.94B |
| P/E: Price-to-earnings: the share price divided by yearly profit per share. Lower can mean cheaper; higher often means investors expect fast growth. | 48.1 | 39.0 |
| Div yield: Dividend yield: the yearly dividend as a percentage of the share price - roughly the income you'd earn just from dividends. | 0.6% | 0.9% |
| Revenue growth | 21.5% | 7.3% |
| 1Y: How much the share price has moved over the past year. | +3% | +15% |
More measures
| Forward P/E: Price-to-earnings: the share price divided by yearly profit per share. Lower can mean cheaper; higher often means investors expect fast growth. | 42.0 | 33.9 |
|---|---|---|
| Net margin | 3.0% | 3.1% |
| ROE | 29.2% | 24.1% |
| Beta: How bumpy the share price is versus the whole market. Above 1 swings more than the market; below 1 is calmer. It's about the ride, not whether it goes up or down. | 0.87 | 0.60 |
The bolder figure is simply the larger of the two - higher is not automatically good (a higher P/E means more expectation in the price; a higher beta means bigger swings).
How they differ
Walmart is roughly 2.1x the size of Costco Wholesale Corporation by market value. On our factor screen Costco Wholesale Corporation currently screens higher on growth. Costco Wholesale Corporation trades on the higher P/E (48.1 vs 39.0), so more expectation is already built into its price. Over the past year the share prices moved +3% (Costco Wholesale Corporation) vs +15% (Walmart).
Descriptive only - how the two compare on today's data, never a verdict on either.
Costco Wholesale Corporation, in one line
Costco is a massive membership-only warehouse club that sells bulk goods at low prices to millions of loyal shoppers.
Read the full Costco Wholesale Corporation explainer →Walmart, in one line
Walmart is the world's largest retailer, helping millions of shoppers save money on groceries and everyday essentials through its massive network of stores.
Read the full Walmart explainer →What to weigh
If sharp swings bother you, the betas differ (0.87 vs 0.60). These are facts to understand, not a verdict - read each full explainer before deciding anything.
Common questions
How does Costco make money if its prices are so low?
Much of Costco's profit comes from membership fees rather than the products themselves. Shoppers pay an annual fee to shop there, and Costco keeps product mark-ups deliberately thin to keep members renewing. Walmart earns mainly from the margin on the products it stocks, topped up by fast-growing online sales and advertising.
Are Costco and Walmart direct competitors?
They overlap on groceries and household goods, so they compete for the same shoppers, but the models differ. Costco stocks fewer products in bulk and relies on membership loyalty; Walmart carries a far wider range across thousands of stores and its website, aiming to be a one-stop shop for everyday needs.