Better Buy: Amazon vs. Costco
Amazon (NASDAQ: AMZN) and Costco Wholesale (NASDAQ: COST) are two top stocks that have both created shareholder wealth for decades. They sell many similar products, but they operate vastly different retail models. Does one beat out the other as a stock to buy right now? Let's check it out.
Amazon has a vast business with multiple categories from e-commerce to cloud computing to streaming, while Costco operates a membership retail warehouse model. There's no question that Amazon easily beats Costco as a growth stock over its lifetime. Even early in the pandemic, when Costco was posting some of its best performance ever, Amazon's sales were still growing faster, despite its bigger size. They have both been struggling now in the aftermath but recently demonstrated a rebound. Let's see the most recent numbers.
Data source: Costco and Amazon quarterly reports. Amazon metrics are from the 2023 third quarter. Costco metrics are from the fiscal 2023 fourth quarter (ended Sept. 3). All growth metrics are year over year.
Source Fool.com
