Better Buy: Costco vs. Home Depot
Retail is rough when there's inflation. Costco Wholesale (NASDAQ: COST) and Home Depot (NYSE: HD) are two of the largest retail chains in the U.S., and both are dealing with similar challenges. Not only are they facing incredibly tough comps to beat from high growth at the beginning of the pandemic, but inflation is making it even harder.
Yet, both of these are perpetually popular companies. Let's see what's doing with their businesses and decide which is the better buy today.
Costco has demonstrated reliable sales and income growth for decades. Its membership model generates consistent sales and breeds loyalty, and the fees themselves account for a large portion of net income. Costco marks up product prices by razor-thin margins, leading to high volume, especially when customers are tightening their spending.
Source Fool.com
