COST vs. HD, BABA, PDD, MCD, WMT, LOW, BKNG, TJX, MELI, and BJ
Should you be buying Costco Wholesale stock or one of its competitors? The main competitors of Costco Wholesale include Home Depot (HD), Alibaba Group (BABA), PDD (PDD), McDonald's (MCD), Walmart (WMT), Lowe's Companies (LOW), Booking (BKNG), TJX Companies (TJX), MercadoLibre (MELI), and BJ's Wholesale Club (BJ).
Home Depot (NYSE:HD) and Costco Wholesale (NASDAQ:COST) are both large-cap retail/wholesale companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, valuation, earnings, risk, community ranking, dividends, analyst recommendations, profitability and media sentiment.
70.9% of Home Depot shares are owned by institutional investors. Comparatively, 68.5% of Costco Wholesale shares are owned by institutional investors. 0.1% of Home Depot shares are owned by insiders. Comparatively, 0.2% of Costco Wholesale shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Home Depot has a net margin of 9.79% compared to Home Depot's net margin of 2.73%. Costco Wholesale's return on equity of 1,056.67% beat Home Depot's return on equity.
Home Depot pays an annual dividend of $9.00 per share and has a dividend yield of 2.7%. Costco Wholesale pays an annual dividend of $4.64 per share and has a dividend yield of 0.6%. Home Depot pays out 60.4% of its earnings in the form of a dividend. Costco Wholesale pays out 30.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Home Depot has raised its dividend for 15 consecutive years and Costco Wholesale has raised its dividend for 21 consecutive years.
Home Depot has higher earnings, but lower revenue than Costco Wholesale. Home Depot is trading at a lower price-to-earnings ratio than Costco Wholesale, indicating that it is currently the more affordable of the two stocks.
Home Depot has a beta of 1.01, suggesting that its share price is 1% more volatile than the S&P 500. Comparatively, Costco Wholesale has a beta of 0.77, suggesting that its share price is 23% less volatile than the S&P 500.
Home Depot presently has a consensus target price of $377.46, indicating a potential upside of 15.10%. Costco Wholesale has a consensus target price of $706.88, indicating a potential downside of 12.67%. Given Costco Wholesale's higher probable upside, analysts clearly believe Home Depot is more favorable than Costco Wholesale.
In the previous week, Costco Wholesale had 41 more articles in the media than Home Depot. MarketBeat recorded 82 mentions for Costco Wholesale and 41 mentions for Home Depot. Home Depot's average media sentiment score of 0.69 beat Costco Wholesale's score of 0.68 indicating that Costco Wholesale is being referred to more favorably in the news media.
Home Depot and Costco Wholesale both received 1786 outperform votes by MarketBeat users. However, 71.96% of users gave Costco Wholesale an outperform vote while only 71.53% of users gave Home Depot an outperform vote.
Summary
Home Depot and Costco Wholesale tied by winning 10 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding COST and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NASDAQ and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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