Core Insights - Costco has significantly outperformed Walmart over the past decade, returning +747.33% compared to Walmart's +553.75% [2] - Recently, Walmart has shown stronger performance with a +229.71% return over the past year, while Costco only returned +2.37% [2] Company Performance - Costco's membership-driven model has led to a high membership renewal rate of 89.7%, contributing to consistent revenue growth [4] - Walmart has transformed into an omnichannel platform, with e-commerce sales accounting for 23% of total net sales and a global advertising business worth $6.40 billion [5] Financial Metrics - Costco's P/E ratio stands at 54x, while Walmart's is at 47x, indicating a premium valuation for Costco [2] - Both companies have delivered strong long-term performance, with Costco's total return on a $1,000 investment over 10 years reaching $8,473.30, while Walmart's reached $6,537.50 [8] Recent Developments - Costco has paid special dividends of $15.00 in 2024, $10.00 in 2020, and $7.00 in 2017, enhancing total returns for shareholders [9] - Walmart has raised its dividend to $0.99 per share for FY2027, reflecting its ongoing transformation and growth [5] Future Outlook - Costco's growth potential remains strong due to sticky membership, rising fee income, and opportunities for international expansion [10] - Walmart's ongoing transformation presents both opportunities and risks, as it navigates a complex operational landscape [11]