Costco Wholesale Corporation’s ( COST) major competitors in the competitive retail market of big discount retailers are Walmart Inc. (WMT) and Target Corporation (TGT). They are also considered to be consumers defensive stocks..
Costco together with its subsidiaries, manages warehouses for members where a vast range of consumer products are available wholesale. Both brands names and private-label items are available across an range of categories including snack foods dry/prepackaged meals tobacco; alcohol and nonalcoholic drinks as well as cleaning products: electronic products as well as health and beauty products and office supplies, produce and deli as well as clothing.costco competitors
Costco also runs photo centers, pharmacies, gas stations, food courts and a host of other services. As as of April 22, 2021 Costco has 809 warehouses. Costco also operates Warehouses located across Canada, Mexico, the United Kingdom, Japan, Korea, Taiwan, Australia and Spain. The company was previously named Costco Companies Inc., Costco was established in 1976 and has its headquarters at Issaquah, Washington.costco competitors
Costco Financial Data
Costco has its market capitalization at $182.3 billion. 2 Its net earnings for the fiscal year of 52 weeks, that ended on August 30 the year 2020, was around 4 billion. 3
(PEG) ratio (PEG) ratio is 4.28. (The PEG ratio for this company is based on the expected earnings for the 12 months that will end June 2022. ).costco competitors
The dividend yield for Costco shares is 0.78 percent..
Return on Equity
(ROE) (ROE) for this company is 23%..
Turnover of inventory is a crucial measure for retail stores, because it provides an excellent indicator of how effectively a business manages its inventory and ordering. The turnover ratio of inventory turnover ratio is also a measure of the quality of the inventory of a shop as well as the quantity in inventory which is old or out of date.
It is also true that each inventory turnover represents a different portion of gross profit. Costco’s ratio of turnover is around 11.84 in the recent fiscal year (ending on August 31st 2020) This means it does all of its inventory each month. 7 This is a sign of high inventory quality and a relatively efficient order management.costco competitors
Walmart Inc. is one Costco’s primary rivals, with shops around the world with three main divisions: Walmart U.S., Walmart International, and Sam’s Club. Sam’s Club most closely resembles Costco’s model of sales, but, Costco is still considered to be directly competing against the two Walmart along with the latter’s associated subsidiary.
Walmart stores sell a range of items, including bakery and deli products; meat, fruits and vegetables; frozen food and dry food items including health and beauty supplements as well as photo processing, apparel, pharmaceuticals, hunting equipment; automotive products and consumer electronic. Walmart has its own mobile line, StraightTalk which provides services mainly via the Verizon towers. 8
The company also offers finance services and products, including cash orders as well as prepaid cards. check cashing, and bill payments. Private-label and brand name products are available at Walmart stores and on its website. At the time of writing, Walmart operates over 10,500 stores through its three subsidiary companies in twenty-four countries. 9 Walmart, Inc. is its headquarters are at Bentonville, Arkansas, and was established in 1962. 10
Walmart Financial Data
At $14.9 billion in the last fiscal year in 2020, Walmart has a substantially more profitable revenue over Costco. 11 However the P/E ratio or P/E ratio of 25.47 is less than Costco’s P/E ratio, which is 39.49. 12 13 This could be an sign of lower expected growth in earnings for the coming years of Walmart. Walmart’s dividend payout of Walmart stock is around 1.57 1 percent, a yield which is superior to Costco. 14
The ratio of Walmart’s inventory turnover is around 8. 15, when compared against Costco’s rate of 12. 7 Walmart’s inventory quality might be a bit less than Costco’s, however its turnover rate is in the middle of acceptable levels which suggests Walmart is likely to do a great job in keeping its inventory fresh and getting rid of obsolete products.
The Target Corporation
Target is a different Costco competitor , and is an all-purpose discount retailer that operates throughout the U.S. It offers essential household items including pharmaceuticals, products for personal care cleaners and paper items as well as accessories; clothing; electronic products; sports items as well as food items in addition to furniture and other goods. Target also provides REDcard credit and debit cards that offer consumers 5 percent discount for purchases. 16
Target makes use of brick-and-mortar stores as well as e-commerce to facilitate selling its merchandise. At the time of writing, Target operates 1,897 stores. 17 The Target Corporation was established in 1962. It is headquartered at Minneapolis, Minnesota. 18
Target Financial Data
The dividend yield of Target, which is 2.1 percent, is greater than Walmart’s, and significantly more than Costco’s dividend. 19 As on September 9, 2021 Target’s PEG ratio was the lowest among the three companies with 1.55 in comparison to Walmart’s ratio at 5.06 as well as Costco’s ratio, which is 4.26. 13 4 20 This is significant as it suggests that Target’s stock price isn’t growing at a faster rate.
Target is the least ratio of inventory turnover of the three at around five, which means the company only rotates its inventory around half times as frequently than Costco and less frequently than Walmart. The lower percentage could suggest that, in general, Target carries a somewhat older stock that Walmart and Costco.