Best Stock to Buy Right Now: Costco vs. Walmart

Market Leaders in Consumer Defensive Stocks - Walmart leads with a market cap of $734 billion, followed by Costco at $415 billion [1] Stock Performance in 2024 - Costco shares gained over 41% in 2024 [2] - Walmart shares increased by 73% in 2024 [2] Valuation Metrics - Walmart's P/E ratio is 37.5 and P/FCF is over 43 [4] - Both companies are trading at historically high P/S ratios [6] Sales Growth Comparison - Costco's revenue grew 46% from FY2019 to FY2022 [17] - Walmart's revenue grew 14.5% over the same period [17] - Both companies have shown similar sales growth in the last two years [7] AI and Technology Adoption - Walmart is leveraging generative AI, AI, and machine learning for business operations [8] - Walmart has a customer-facing shopping assistant in beta testing since summer 2024 [8] - Costco has fewer AI projects and last mentioned AI in a financial call in spring 2023 [14] E-commerce and International Expansion - Walmart is expanding e-commerce operations in markets like Mexico [18] - E-commerce is a significant part of Costco's business plan [14] Industry Trends - Discount retail stores have enjoyed stellar market performance in 2024 [9] - Low-priced goods are in high demand due to inflation since summer 2021 [9] Investment Considerations - Walmart's stock is less expensive than Costco's across various valuation metrics [15] - Both stocks are currently more of a "hold" than a "buy" recommendation [16]