In today's rapidly evolving and fiercely competitive business landscape, it is crucial for investors and industry analysts to conduct comprehensive company evaluations. In this article, we will undertake an in-depth industry comparison, assessing Costco Wholesale (NASDAQ:COST) alongside its primary competitors in the Consumer Staples Distribution & Retail industry. By meticulously examining crucial financial indicators, market positioning, and growth potential, we aim to provide valuable insights to investors and shed light on company's performance within the industry.
Costco Wholesale Background
Costco operates a membership-based, no-frills retail model, predicated on offering a select product assortment in bulk quantities at bargain prices. The firm avoids maintaining costly product displays by keeping inventory on pallets and limits distribution expenses by storing its inventory at point of sale in the warehouse. Given Costco's frugal cost structure, the firm is able to price its merchandise below competing retailers, driving high sales volume per warehouse and allowing the retailer to generate strong profits on thin margins. Costco operates over 600 warehouses in the United States and boasts over 60% market share in the domestic warehouse club industry. Internationally, Costco operates another 270 warehouses, primarily in markets such as Canada, Mexico, Japan, and the UK.
Company | P/E | P/B | P/S | ROE | EBITDA (in billions) | Gross Profit (in billions) | Revenue Growth |
---|---|---|---|---|---|---|---|
Costco Wholesale Corp | 46.68 | 15.24 | 1.27 | 7.43% | $2.79 | $7.3 | 5.75% |
Walmart Inc | 31.34 | 5.75 | 0.75 | 6.73% | $11.33 | $41.56 | 5.69% |
Target Corp | 19.21 | 5.90 | 0.74 | 10.65% | $2.62 | $8.52 | 1.67% |
Dollar General Corp | 21.13 | 5.19 | 0.91 | 6.09% | $0.8 | $2.91 | -3.38% |
BJ's Wholesale Club Holdings Inc | 19.56 | 6.92 | 0.51 | 10.37% | $0.27 | $0.96 | 8.68% |
Sendas Distribuidora SA | 26.10 | 4 | 0.28 | 6.63% | $1.42 | $3.07 | 8.35% |
Pricesmart Inc | 22.49 | 2.34 | 0.56 | 3.42% | $0.08 | $0.2 | 10.59% |
Almacenes Exito SA | 25.40 | 0.52 | 0.15 | 1.88% | $426.56 | $1373.83 | -12.61% |
Average | 23.6 | 4.37 | 0.56 | 6.54% | $63.3 | $204.44 | 2.71% |