Better Buy: Costco vs. Walmart
Costco (NASDAQ: COST) and Walmart (NYSE: WMT) are both resilient retailers that withstood Amazon's (NASDAQ: AMZN) assault as other brick-and-mortar retailers withered. Over the past decade, Costco's stock surged nearly 400% as Walmart's stock doubled.
Both retailers leveraged their scale to stay relevant. Costco's wholesale model enabled it to sell products at bulk rates while propping up its margins with membership fees. Walmart, which owns Costco's rival Sam's Club, matched Amazon's prices and turned its stores into a fulfillment network for online deliveries and pick-ups.
However, both stocks recently dipped along with the broader market amid concerns about the coronavirus crisis, the 2020 election, and other macro headwinds. Should investors accumulate shares of either retailer during the market downturn?
Source Fool.com
