Costco and Walmart are undoubtedly among the best retailers in the world. Both operate on a very similar business model, which is to offer goods at the lowest possible prices to consumers.
But which of them is the better stock to buy at current market prices? This is the question I want to answer in this video. Based on revenues over the past twelve months, Walmart's revenues are more than double those of Costco.
Walmart generated $736 billion in revenue over the past twelve months, while Costco generated $294 billion.
Over the past decade, Walmart has brilliantly turned its geographic location from a weakness into a competitive advantage against Amazon. Do you remember in 2016, when investors were worried about Walmart potentially going bankrupt and being overtaken by Amazon and its e-commerce business?
Walmart, I think Walmart was 50 times as much. I know that Cusco is at high levels. I think Walmart is trading at 40 to 50 times earnings. This is madness. It's difficult to build an investment case around this.
