Costco Wholesale vs Walmart: Business Model & Financial Comparison 2026
Costco Wholesale · Consumer Defensive / Discount Stores·Walmart · Consumer Defensive / Discount Stores
Financial Comparison
| Metric | COSTCostco Wholesale | WMTWalmart |
|---|---|---|
| Market Cap | $447.43B | $1.01T |
| Revenue (TTM) | $286.27B | $713.16B |
| Revenue Growth | 9.2% | 5.6% |
| Gross Margin | 12.9% | 24.9% |
| Operating Margin | 3.7% | 4.6% |
| Net Margin | 3.0% | 3.1% |
| Return on Equity | 29.7% | 21.8% |
| P/E (Trailing) | 52.4x | 46.3x |
| P/E (Forward) | 45.0x | 38.5x |
| Free Cash Flow | $6.69B | $10.55B |
| Cash | $18.24B | $10.73B |
| Total Debt | $8.34B | $68.43B |
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 →Walmart
Walmart stands as the world's largest retailer by revenue. Generating $713.16 billion in annual revenue (growing 5.6% year-over-year) and carrying a market capitalization of $983.13 billion, the company has cemented its position as a foundational player in the global Discount Stores landscape. Under the leadership of Doug McMillon, Walmart continues to execute on a multi-year strategic vision that balances growth investment with shareholder retur…
Full Walmart 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.
Walmart
- With a market capitalization of $983.13B, Walmart is one of the largest companies in its sector, providing the scale advantages of brand recognition, supplier leverage, and capital access that smaller
- Walmart maintains a gross margin of 24.9% and operating margin of 4.6%, demonstrating consistent operational execution and cost discipline in a competitive market.
- A return on equity of 21.8% demonstrates that Walmart generates strong returns from shareholder capital, a hallmark of companies with durable competitive advantages.
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
Walmart
- Walmart's debt-to-equity ratio of 63.2 indicates meaningful financial leverage. Total debt stands at $67.09B against $10.73B in cash and equivalents.
- A net profit margin of 3.1% leaves limited buffer against revenue fluctuations or cost increases. Any significant market downturn could quickly pressure profitability.
- With 2,100,000 employees globally, Walmart faces inherent challenges in agility, decision-making speed, and maintaining a consistent culture across geographies — advantages that smaller, nimbler compe
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
Walmart
- Walmart 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 in this environment tr
- 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 Walmart
- With $10.73B in cash and strong free cash flow generation, Walmart 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
Walmart
- Global economic slowdowns, inflation, or rising interest rates can reduce consumer and enterprise spending. Walmart'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 Walmart's business
- 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 Walmart: FAQ
- Is Costco Wholesale bigger than Walmart?
- By market capitalization, Walmart is larger at $1.01T vs Costco Wholesale's $447.43B.
- Which has better profit margins — Costco Wholesale or Walmart?
- Walmart has higher net profit margins (3.1%) compared to Costco Wholesale (3.0%). Gross and operating margins are compared in the table above.
- What sectors do Costco Wholesale and Walmart operate in?
- Costco Wholesale operates in the Consumer Defensive sector (Discount Stores). Walmart operates in the Consumer Defensive sector (Discount Stores).
- How does Costco Wholesale's revenue compare to Walmart's?
- Costco Wholesale generates $286.27B in annual revenue (TTM) while Walmart generates $713.16B. Walmart is the larger company by revenue as of 2026.