Two of the most dominant forces in retail have had very different years in the stock market. Walmart (WMT +1.03%), the world's largest company by revenue, is up an impressive 25% since the start of 2025. Costco Wholesale (COST +1.19%) is down more than 6.5% as of Dec. 18.
NASDAQ: WMT
Key Data Points
Costco and Walmart have distinct business models. Costco focuses on higher-value items and a warehouse membership model. Walmart offers a broader, lower-cost product mix and is heavily focused on expansion of its online business.
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Both companies boast strong customer loyalty and global scale. The better buy depends on whether you're leaning more toward growth or value.
The value case for Costco
Costco's latest quarterly earnings were strong, and the company's growth continues in a slow but reliable fashion. Costco reported first-quarter 2026 net sales growth of 8.2%. Costco also offers investors a quarterly dividend of $1.30 per share. Costco's memberships have grown to more than 81 million, with nearly half opting for the more expensive Executive Membership. Costco is predictable in both its cash flow and steady growth, making it a bonafide blue chip value stock.
NASDAQ: COST
Key Data Points
Walmart appeals to a wide range of customers
Walmart has ambitious e-commerce plans. In its most recent quarter, Walmart reported a 27% increase in e-commerce sales, a growth bright spot. The company also recently moved to the Nasdaq, signaling its intention to be taken seriously as a tech-forward omniretailer.
Walmart's greatest strengths include its online expansion and growing appeal to low- and higher-income households. With technological advances and tightening consumer wallets, Walmart is likely to benefit more than most retailers.
Walmart wants to beat Amazon
Both stocks trade at a premium. Walmart has a price-to-earnings ratio of just under 40, and Costco is over 45. Still, both stocks offer a lot, but if you're prioritizing growth over value, Walmart's push to overtake Amazon in e-commerce market share is a compelling story. For that reason, Walmart is currently the better buy.
