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We compare two good contenders: Costco and Walmart. Get Mike’s views on both companies and the framework to compare two or more stocks on your own.
 

You’ll Learn

• While both companies are part of the consumer staples and discount stores industry, their business models are quite different.
• How is Costco’s warehouse business model different from Walmart’s, and why is it one of Costco’s advantages?
• Costco and Walmart both show a strong dividend triangle. However, Costco’s seems even more robust.
• What are Costco’s (COST) and Walmart’s (WMT) growth vectors?
• How would you describe COST and WMT’s potential downsides and risks?
• Which one would you find more equipped to face the Amazon competition and why?
• Walmart has a larger market cap and a stronger worldwide presence. Its reputation precedes itself: We can find everything and anything at a cheaper price. Doesn’t this make it more resilient to challenging economic situations than Costco, for which you need a membership?
• What does the PE Ratio trend look like for both stores?
• Is Costco or Walmart winning the battle?
• In summary, here are the steps we followed to compare these stocks:
  • Look at the business model
  • Analyze the dividend triangle
  • Learn about growth vectors
  • Consider potential downsides and risks
  • Have a look at the valuation

Audio Length: 00:34:35

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