Costco
Costco together with its affiliates, manages membership warehouses in which a broad range of consumer products are offered wholesale.costco similar companies Both brands names and private-label items are offered across an range of categories of merchandise that include snacks dried/prepackaged food items; tobacco; alcohol and nonalcoholic beverages; cleaning equipment such as electronics, cosmetic and health aids as well as office equipment, produce and deli and clothing.
Costco also runs pharmacies as well as food courts, photo centers gas stations, as well as other services. As as of April 22, 2021 Costco has 809 warehouses in operation. Costco also operates warehouses located in Canada, Mexico, the United Kingdom, Japan, Korea, Taiwan, Australia and Spain. The company was previously named Costco Companies Inc., Costco was established in 1976. Its headquarters are at Issaquah, Washington. 1
Costco Financial Data
Costco has a market capitalization of approximately $182.3 billion.2 Its net income for the 52-week fiscal year which ended August 30, 2020, was approximately $4 billion.3 The price/earnings-to-growth (PEG) ratio is 4.28. (The PEG ratio for this company is based on the expected earnings for the twelve months that ended June 2022. ). 4 The dividend yield for Costco shares is 0.78 percent. 5 The return on equity (ROE) for Costco is 23 percent.costco similar companies
Turnover in inventory is a crucial measure for retail stores, since it gives an accurate indication of how well a business manages its inventory and ordering. The turnover ratio for inventory turnover ratio can also be used to determine the quality of the inventory of a shop as well as the quantity that’s old or in a state of disuse.
It is also true that each turnover of inventory represents a different portion of gross profits made. Costco’s turnover ratio for inventory is around 11.84 during the recent fiscal year (ending on August 31st in 2020) which means that it does its entire inventory every month. 7 This is a sign of high inventory quality and a relatively efficient order management.
Walmart Inc.
Walmart Inc. is one Costco’s primary competitors, having stores across the globe with three main divisions: Walmart U.S., Walmart International, and Sam’s Club. Sam’s Club most closely resembles Costco’s sales model; but, Costco is still considered to be directly competing to Walmart and its subsidiary. Walmart along with the latter’s affiliate.costco similar companies
Walmart stores carry a wide range of products, such as bakery and deli products; meat, fruits and vegetables; frozen food and dry food items as well as health and beauty products and photo processing equipment; clothing; pharmaceuticals and hunting items as well as automotive products and consumer electronic. Walmart offers its own cellular line, StraightTalk which provides services primarily via the Verizon towers. 8
The company also offers products and services for financial institutions and products such as cash orders and prepaid cards, check cashing and bill payment. Brand-name and private label products are sold at Walmart stores and on its website. At the time of writing, Walmart operates over 10,500 stores across its three subsidiaries across twenty-four countries. 9 Walmart, Inc. is its headquarters are within Bentonville, Arkansas, and was established in 1962. 10
Walmart Financial Data
At $14.9 billion in the last fiscal year in 2020, Walmart has a substantially more profitable revenue that Costco. 11 However Walmart’s P/E ratio or P/E ratio, of 25.47 is less than Costco’s at 39.49. 12 13 This could be an hint of lower growth in earnings for the coming years of Walmart. Walmart’s dividend rate of Walmart stock is about 1.57 1 percent, a yield that is higher than Costco. 14
Walmart’s turnover rate for inventory is around 8. 15, as compared with Costco’s 12. 7 Walmart’s inventory quality could be slightly less than Costco’s, however its turnover rate remains in the middle of acceptable levels that suggests Walmart probably does a decent job in keeping its inventory fresh and removing obsolete or unused products.
The Target Corporation
Target is a second Costco competitor , and is a general merchandise discount store that operates within the U.S. It offers essential household items including pharmaceuticals, products for personal care cleaners and paper items as well as accessories; clothing; electronics, sporting items foods, as furniture, and various goods. Target also provides REDcard credit and debit cards that offer consumers 5 percent discount for purchases. 16
Target makes use of brick-and-mortar locations as well as e-commerce to facilitate selling its merchandise. In 2021, Target operates 1,897 stores. 17 The Target Corporation was founded in 1962, and is located at Minneapolis, Minnesota. 18
Target Financial Data
The Target dividend yield, 2.1 percent, is much higher than Walmart’s and substantially more than Costco’s dividend. 19 As on September 9, 2021 Target’s PEG ratio is among the lowest of the three at 1.55 in comparison to the PEG ratio for Walmart of 5.06 as well as Costco’s ratio, which is 4.26. 13 4 20 This is significant as it means that the price of Target’s stock is not growing at the same rate.
Target is the least ratio of inventory turnover of the three at around five, which means the company only rotates its inventory half times as frequently than Costco and less frequently than Walmart. The lower percentage could be a sign that, on average, Target carries a somewhat older stock as compared to Walmart and Costco.
