COST vs WMT
Costco Wholesale Corporation Common Stock vs Walmart Inc. Common Stock. Side-by-side ACCE scores, valuation, profitability, and growth.
$COST vs $WMT: Costco Wins on Growth, But Neither Is Cheap
$COST earns the edge here, driven by its ACCE Growth score of 88 versus $WMT's 28. The numbers behind that gap are stark: revenue up 21.5% year-over-year against Walmart's 5.9%, and earnings growth of 45.5% against Walmart's -9.1% decline. $COST also posts a stronger ROE of 29.1% versus 22.3%, with lower leverage (D/E 0.22 vs 0.45).
The catch is valuation. $COST trades at a trailing P/E of 46.1 and EV/EBITDA of 28.0, both well above $WMT's 39.2 and 19.3 respectively. ACCE's 6-model fair value puts $COST at $413.23 against a current price of $915.74, implying roughly 55% downside. $WMT's fair value estimate of $47.92 versus $107.14 tells a similar story. Both stocks look expensive by this measure.
$COST is the better business right now. The growth differential is too wide to ignore, and its quality score of 63 edges Walmart's 58. $WMT's 0.9% yield and analyst target of $127.72 offer modest appeal, but declining earnings make it hard to justify the premium. For growth-oriented exposure to Consumer Defensive, $COST is the pick, with eyes open on valuation risk.