Better Buy: Costco Wholesale Corporation vs. Wal-Mart

Much has been made about the current "retail apocalypse." Yet two retailers -- Wal-Mart Stores (NYSE: WMT) and Costco Wholesale (NASDAQ: COST) -- have continued to thrive even as many of their peers have seen their business models disrupted by e-commerce.

What is it that separates these two retailers from the pack? And which is the better buy today? Read on to find out.

The core of Costco's competitive strategy is its membership model. The company charges an annual fee ranging from $60 to $120. In return, it offers low prices on a carefully curated selection of goods. Costco often offers limited amounts of many of these products, and the items available change frequently. This low-price strategy and treasure hunt-type experience help to entice people to shop at its stores and also to insulate Costco from the threat of e-commerce.

Source: Fool.com