Better Buy: Costco vs. Home Depot
The coronavirus pandemic has been difficult from any number of viewpoints, but two companies that have navigated the challenges while capitalizing on their specific advantages are Costco (NASDAQ: COST) and Home Depot (NYSE: HD). Both retailers were able to remain open when others were mandated to close because they were deemed essential businesses. Both are also very good at what they do, but a close analysis will reveal which is the better buy at this time.
Costco's June sales numbers were very impressive, with comparable-store sales (excluding the impact from changes in gasoline prices and foreign currencies) up more than 14%. The rise in e-commerce sales was 87%, showing how effectively Costco has been pivoting in that direction.
The membership-based business model has worked well. In exchange for high-margin membership fees, Costco provides customers with quality merchandise at prices that other big-box stores find difficult to compete with.
Source Fool.com
