Despite operating amid a cutthroat retail industry where competitive advantages are difficult to manifest and omnichannel penetration continues to burgeon from the likes of wide-moats Amazon and Walmart, we believe Costco boasts a unique edge due to its loyal membership base, meticulous cost management, and impressive scale.
Costco maintains a proven formula for successfully translating its operations across borders and faces minimal direct competition abroad, implying a long runway of growth prospects.
As Costco reaches a point of maturity in its US and Canadian markets, the firm’s cost leverage may show signs of deterioration.
|
Metric
|
COST
|
KR
|
TGT
|
|---|---|---|---|
Price/Earnings (Normalized) | 47.79 | 11.74 | 18.29 |
Price/Book Value | 15.30 | 3.42 | 5.61 |
Price/Sales | 1.28 | 0.27 | 0.70 |
Price/Cash Flow | 30.42 | 6.70 | 9.97 |
|
Metric
|
COST
|
KR
|
TGT
|
|---|---|---|---|
Quick Ratio | 0.38 | 0.33 | 0.27 |
Current Ratio | 0.93 | 0.81 | 0.91 |
Interest Coverage | 50.15 | 7.43 | 11.55 |
|
Metric
|
COST
|
KR
|
TGT
|
|---|---|---|---|
Return on Assets (Normalized) | 11.17% | 6.91% | 8.02% |
Return on Equity (Normalized) | 32.34% | 32.00% | 35.66% |
Return on Invested Capital (Normalized) | 22.17% | 12.44% | 15.13% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
WMT
| Walmart Inc | Kbfxdfs | Nwph | $480.7 Bil | |
TGT
| Target Corp | Tjymjbgz | Fjr | $75.9 Bil | |
WMMVF
| Wal - Mart de Mexico SAB de CV | — | Dmc | $66.1 Bil | |
WMMVY
| Wal - Mart de Mexico SAB de CV ADR | — | Lsyd | $65.1 Bil | |
DG
| Dollar General Corp | Glmpcfr | Wvktq | $31.7 Bil | |
DLTR
| Dollar Tree Inc | Xmzkgqtc | Ckyqf | $27.0 Bil | |
DLMAF
| Dollarama Inc | — | Yzc | $22.9 Bil | |
DQJCY
| Pan Pacific International Holdings Corp ADR | — | Wjblj | $14.6 Bil | |
BJ
| BJ's Wholesale Club Holdings Inc | — | Tcvzllg | $10.0 Bil |
