Better Buy: Costco vs. GameStop

It doesn't seem like a fair fight. Pitting Costco Wholesale (NASDAQ: COST) against GameStop (NYSE: GME) seems to have all the makings of a financial blowout. Costco is a rock star warehouse club operator with a future that brightens with every passing year. GameStop is a struggling small-box retailer clinging to fading remnants of the physical distribution of video games.

However, pull up the stock charts and things start to get interesting. Costco has been a steady producer, and its 30% year-to-date gain is trouncing the market's 12% climb in 2020. GameStop's performance puts both of those measuring sticks to shame. GameStop shares have nearly doubled this year, up 98% through Monday's close. GameStop stock has more than quadrupled since its springtime bottom. Suddenly this bout of two very different retail chains gets a lot more interesting.

Image source: Getty Images.

Source Fool.com