Best Stock to Buy Right Now: Costco vs. PepsiCo

The consumer staples industry is an attractive one for many investors seeking a balance between stability and earnings power. Companies that excel in this space tend to reward shareholders with strong returns through a wide range of selling environments, even if earnings growth is often eclipsed by other sectors when the economy is booming.

Costco (NASDAQ: COST) and (NASDAQ: PEP) are respective leaders in their consumer staples niches. And while they don't compete against each other, the two businesses share similarities that make them appealing as investments. So, let's compare the two to see which could be the better buy right now.

Costco and Pepsi both deliver a measure of diversity that's hard to find in their market segments. Costco sells a high proportion of services and consumer discretionary products in addition to its core groceries division. For PepsiCo, its snack and food segment gives it a huge growth target beyond just sparkling beverages.

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Source Fool.com