Costco Wholesale vs Lowe's: Business Model & Financial Comparison 2026
Costco Wholesale · Consumer Defensive / Discount Stores·Lowe's · Consumer Cyclical / Home Improvement Retail
Financial Comparison
| Metric | COSTCostco Wholesale | LOWLowe's |
|---|---|---|
| Market Cap | $447.43B | $133.28B |
| Revenue (TTM) | $286.27B | $86.29B |
| Revenue Growth | 9.2% | 10.9% |
| Gross Margin | 12.9% | 33.5% |
| Operating Margin | 3.7% | 8.3% |
| Net Margin | 3.0% | 7.7% |
| Return on Equity | 29.7% | N/A |
| P/E (Trailing) | 52.4x | 20.0x |
| P/E (Forward) | 45.0x | 17.4x |
| Free Cash Flow | $6.69B | $5.40B |
| Cash | $18.24B | $1.35B |
| Total Debt | $8.34B | $44.68B |
Data sourced from Yahoo Finance. Green highlights indicate better performance for that metric. Use the interactive tool for real-time data.
Business Model Comparison
Costco Wholesale
Costco Wholesale Corporation stands as a leading company in Consumer Defensive. Generating $280.39 billion in annual revenue (growing 8.3% year-over-year) and carrying a market capitalization of $436.22 billion, the company has cemented its position as a foundational player in the global Discount Stores landscape. Under the leadership of its leadership team, Costco Wholesale Corporation continues to execute on a multi-year strategic vision that b…
Full Costco Wholesale analysis →Lowe's
Lowe's stands as the second-largest home improvement retailer in the world, serving contractors and DIY customers. Generating $86.29 billion in annual revenue (growing 10.9% year-over-year) and carrying a market capitalization of $142.88 billion, the company has cemented its position as a foundational player in the global Home Improvement Retail landscape. Under the leadership of Marvin Ellison, Lowe's continues to execute on a multi-year strateg…
Full Lowe's analysis →SWOT Analysis Comparison
Strengths
Costco Wholesale
- With a market capitalization of $436.22B, Costco Wholesale Corporation is one of the largest companies in its sector, providing the scale advantages of brand recognition, supplier leverage, and capita
- A return on equity of 30.3% demonstrates that Costco Wholesale Corporation generates strong returns from shareholder capital, a hallmark of companies with durable competitive advantages.
- Costco Wholesale Corporation generated $7.17B in free cash flow, providing financial flexibility to invest in growth initiatives, return capital to shareholders, or strengthen the balance sheet.
Lowe's
- With a market capitalization of $142.88B, Lowe's is one of the largest companies in its sector, providing the scale advantages of brand recognition, supplier leverage, and capital access that smaller
- Lowe's maintains a gross margin of 33.5% and operating margin of 8.3%, demonstrating consistent operational execution and cost discipline in a competitive market.
- Revenue grew 10.9% year-over-year to $86.29B, indicating strong demand for Lowe's's products and services and outperformance relative to many industry peers.
Weaknesses
Costco Wholesale
- A net profit margin of 3.0% leaves limited buffer against revenue fluctuations or cost increases. Any significant market downturn could quickly pressure profitability.
- With 341,000 employees globally, Costco Wholesale Corporation faces inherent challenges in agility, decision-making speed, and maintaining a consistent culture across geographies — advantages that sma
Lowe's
- With 300,000 employees globally, Lowe's faces inherent challenges in agility, decision-making speed, and maintaining a consistent culture across geographies — advantages that smaller, nimbler competit
- Persistent market share gap vs Home Depot in professional contractor business — HD is the preferred Pro destination
- High housing turnover sensitivity: every 1M fewer home sales represents significant lost revenue
Opportunities
Costco Wholesale
- Costco Wholesale Corporation operates in the Discount Stores segment of the broader Consumer Defensive sector, which represents a $12 trillion global consumer staples market. Even modest share gains i
- Emerging markets — particularly India (1.4B people, rapidly growing middle class), Southeast Asia (700M people), and Sub-Saharan Africa — represent significant untapped addressable markets for Costco
- With $17.18B in cash and strong free cash flow generation, Costco Wholesale Corporation is well-positioned to pursue strategic acquisitions that expand its capabilities, customer base, or geographic r
Lowe's
- Lowe's operates in the Home Improvement Retail segment of the broader Consumer Cyclical sector, which represents a $28 trillion global consumer spending market. Even modest share gains in this environ
- Emerging markets — particularly India (1.4B people, rapidly growing middle class), Southeast Asia (700M people), and Sub-Saharan Africa — represent significant untapped addressable markets for Lowe's'
- With $1.35B in cash and strong free cash flow generation, Lowe's is well-positioned to pursue strategic acquisitions that expand its capabilities, customer base, or geographic reach.
Threats
Costco Wholesale
- Global economic slowdowns, inflation, or rising interest rates can reduce consumer and enterprise spending. Costco Wholesale Corporation's revenue is not fully insulated from macroeconomic cycles, and
- Increasing government regulation — particularly data privacy laws (GDPR, CCPA), antitrust enforcement, and trade restrictions — poses compliance costs and potential restrictions on Costco Wholesale Co
- Competition for skilled technology, engineering, and management talent remains intense. High employee turnover or inability to attract top talent could slow innovation and execution — particularly cri
Lowe's
- Global economic slowdowns, inflation, or rising interest rates can reduce consumer and enterprise spending. Lowe's's revenue is not fully insulated from macroeconomic cycles, and a recession scenario
- Increasing government regulation — particularly data privacy laws (GDPR, CCPA), antitrust enforcement, and trade restrictions — poses compliance costs and potential restrictions on Lowe's's business m
- Competition for skilled technology, engineering, and management talent remains intense. High employee turnover or inability to attract top talent could slow innovation and execution — particularly cri
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Open Comparison ToolCostco Wholesale vs Lowe's: FAQ
- Is Costco Wholesale bigger than Lowe's?
- By market capitalization, Costco Wholesale is larger at $447.43B vs Lowe's's $133.28B.
- Which has better profit margins — Costco Wholesale or Lowe's?
- Lowe's has higher net profit margins (7.7%) compared to Costco Wholesale (3.0%). Gross and operating margins are compared in the table above.
- What sectors do Costco Wholesale and Lowe's operate in?
- Costco Wholesale operates in the Consumer Defensive sector (Discount Stores). Lowe's operates in the Consumer Cyclical sector (Home Improvement Retail).
- How does Costco Wholesale's revenue compare to Lowe's's?
- Costco Wholesale generates $286.27B in annual revenue (TTM) while Lowe's generates $86.29B. Costco Wholesale is the larger company by revenue as of 2026.