Amidst today's fast-paced and highly competitive business environment, it is crucial for investors and industry enthusiasts to conduct comprehensive company evaluations. In this article, we will delve into an extensive industry comparison, evaluating Costco Wholesale (NASDAQ:COST) in comparison to its major competitors within the Consumer Staples Distribution & Retail industry. By analyzing critical financial metrics, market position, and growth potential, our objective is to provide valuable insights for investors and offer a deeper understanding of company's performance in 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 enjoys 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 | 53.28 | 17.50 | 1.51 | 7.9% | $2.84 | $7.34 | 9.07% |
Walmart Inc | 29.21 | 6.74 | 0.84 | 6.18% | $10.88 | $40.08 | 6.05% |
Target Corp | 16.30 | 4.86 | 0.63 | 6.91% | $2.04 | $7.08 | -3.12% |
Dollar General Corp | 18.87 | 4.07 | 0.73 | 5.28% | $0.78 | $2.99 | 6.11% |
BJ's Wholesale Club Holdings Inc | 22.18 | 7.44 | 0.57 | 7.44% | $0.22 | $0.88 | 4.14% |
Pricesmart Inc | 20.06 | 2.23 | 0.52 | 3.6% | $0.08 | $0.22 | 13.11% |
Sendas Distribuidora SA | 19.05 | 2.82 | 0.19 | 1.29% | $1.15 | $2.8 | 14.08% |
Almacenes Exito SA | 66.01 | 0.45 | 0.14 | -0.61% | $245.5 | $1321.95 | -3.32% |
Average | 27.38 | 4.09 | 0.52 | 4.3% | $37.24 | $196.57 | 5.29% |