Quick verdict: COST vs WMT in 2026

Walmart Inc. (WMT) appears to have an overall edge in this 2026 stock comparison, leading on more comparable metrics, particularly in terms of valuation and operational efficiency. Costco Wholesale Corporation (COST) demonstrates stronger revenue growth momentum and higher analyst price target upside, making it a compelling choice for growth-oriented investors. Conversely, WMT stands out as the value leader and also shows superior profitability through its margins, making it the analyst favourite overall despite COST offering more upside potential. Not investment advice.

COST vs WMT: key metrics side by side

Full side-by-side comparison of COST and WMT across valuation, profitability, growth and analyst sentiment. Data updated 2026-05-07.

COST vs WMT valuation comparison

When assessing the COST vs WMT valuation in 2026, Walmart Inc. (WMT) appears to offer a more attractive entry point based on traditional metrics. WMT currently trades at a P/E ratio of 47.36x and a Price-to-Book (P/B) ratio of 10.41x. In contrast, Costco Wholesale Corporation (COST) commands a higher P/E of 51.71x and a P/B of 13.78x. This suggests that investors are currently willing to pay a premium for Costco’s perceived growth prospects and membership-based business model, despite WMT’s larger revenue base.

A deeper dive into discounted cash flow (DCF) analysis further highlights the valuation discrepancy. WMT’s DCF suggests an upside of +13.9% from its current price of $130.08, indicating that it may be undervalued by this model. For COST, the DCF valuation of $326.12 implies a significant potential downside of -67.2% from its current price of $995.75. This wide gap suggests that, while Costco is recognized for its quality, its current market price may be significantly extended relative to its intrinsic value according to the DCF model, making WMT the more appealing option from a pure valuation standpoint at present.

COST vs WMT growth comparison

In terms of top-line expansion, Costco Wholesale Corporation (COST) demonstrates stronger growth momentum compared to Walmart Inc. (WMT). COST reported a robust revenue growth of +8.2% year-over-year, reaching $275.24 billion. This indicates a solid performance in expanding its membership base and sales volumes within its warehouse model, a key factor for investors keen on high-growth retail stocks.

While COST outpaces WMT in revenue growth, it’s important to consider the immense scale of each company. Walmart’s substantially larger revenue base of $713.16 billion still achieved a respectable +4.7% year-over-year growth, which represents a massive absolute increase in sales. For investors prioritizing companies with higher percentage growth rates and a potentially more agile expansion strategy, COST might present a more attractive proposition. However, WMT’s consistent growth on a colossal scale speaks to its entrenched market position and resilient business model, crucial aspects for stability in a cost vs wmt stock comparison 2026.

COST vs WMT profitability

An analysis of COST vs WMT profitability reveals that Walmart Inc. (WMT) generally operates with better margins, though both companies exhibit thin margins typical of the highly competitive retail sector. WMT boasts a net margin of 3.07% and a stronger EBITDA margin of 6.52%. In comparison, Costco Wholesale Corporation (COST) reported a net margin of 2.99% and an EBITDA margin of 4.92%. Additionally, WMT’s gross margin is significantly higher at 24.93% compared to COST’s 12.93%, showcasing greater efficiency in its core merchandising and supply chain operations.

Despite WMT’s superior operational margins, COST shows strength in its ability to generate free cash flow relative to its enterprise value, reflected in a higher Free Cash Flow (FCF) yield of 2.06% compared to WMT’s 1.44%. This indicates that Costco is more efficient at converting its sales into cash available to shareholders and for reinvestment, potentially due to its membership fee structure. Unfortunately, Return on Equity (ROE) data is not available for either company, preventing a direct comparison of how efficiently they generate profits from shareholder equity. Overall, WMT tends to be more efficient in managing its operational costs and achieving higher profit margins from its sales.

Analyst ratings: COST vs WMT

When examining analyst sentiment for COST vs WMT, both companies receive a “Buy” consensus, but Walmart Inc. (WMT) garners slightly stronger backing from the analyst community. Out of 64 analysts covering WMT, an impressive 71.9% have issued a “Buy” rating. Their collective price target stands at $137.22, implying a +5.5% upside from its current price of $130.08. This robust support is also reflected in its FMP rating of B+, suggesting a slightly more favorable fundamental outlook for Walmart.

For Costco Wholesale Corporation (COST), out of 58 analysts, 65.5% recommend a “Buy”. The consensus price target for COST is $1070, which represents a higher potential upside of +7.5% from its current price of $995.75. Despite a slightly lower percentage of “Buy” ratings and an FMP rating of B, the higher projected upside for COST indicates that analysts see greater near-term appreciation potential for the stock, aligning with its stronger revenue growth figures and potentially a more aggressive growth trajectory going forward.

Should I buy COST or WMT stock in 2026?

Deciding whether you should buy COST or WMT stock in 2026 largely depends on your investment priorities and risk tolerance. For investors prioritizing strong top-line growth and potential stock appreciation, Costco Wholesale Corporation (COST) might be the preferred choice. COST’s 8.2% year-over-year revenue growth significantly outpaces WMT’s 4.7%, indicating stronger momentum in expanding its business. Furthermore, analysts project a higher upside of +7.5% for COST compared to +5.5% for WMT, suggesting a more favorable near-term price trajectory. This makes COST an attractive option for those focused on revenue acceleration in the consumer defensive sector.

For value-oriented investors focusing on cost vs wmt fundamentals and valuation, Walmart Inc. (WMT) presents a more compelling case. WMT trades at a lower P/E ratio of 47.36x and a P/B ratio of 10.41x, compared to COST’s 51.71x and 13.78x, respectively. Crucially, WMT’s discounted cash flow (DCF) analysis indicates a +13.9% upside from its current price, while COST shows a significant -67.2% downside according to the same model, hinting at potential overvaluation for Costco at its current market price. WMT also demonstrates superior profitability margins, with a net margin of 3.07% and EBITDA margin of 6.52%, indicating better operational efficiency.

When considering both companies for income generation, neither COST nor WMT stands out as a strong dividend play, as both offer a minimal dividend yield of 0.01%. Therefore, investors seeking substantial dividend income would likely need to look elsewhere for their portfolio. Ultimately, a prudent decision between these retail giants in this cost vs wmt stock comparison 2026 hinges on whether you value Costco’s robust growth and higher analyst target upside, or Walmart’s more attractive valuation, superior margins, and overall analyst consensus. This is not investment advice; always conduct your own thorough research.

More COST and WMT comparisons

COST full stock analysis · WMT full stock analysis · All stock comparisons

FAQ: COST vs WMT