Walmart vs Costco Wholesale: Business Model & Financial Comparison 2026
Walmart · Consumer Defensive / Discount Stores·Costco Wholesale · Consumer Defensive / Discount Stores
Financial Comparison
| Metric | WMTWalmart | COSTCostco Wholesale |
|---|---|---|
| Market Cap | $987.04B | $443.11B |
| Revenue (TTM) | $713.16B | $280.39B |
| Revenue Growth | 5.6% | 8.3% |
| Gross Margin | 24.9% | 12.9% |
| Operating Margin | 4.6% | 3.7% |
| Net Margin | 3.1% | 3.0% |
| Return on Equity | 21.8% | 30.3% |
| P/E (Trailing) | 45.3x | 53.5x |
| P/E (Forward) | 37.6x | 44.0x |
| Free Cash Flow | $7.77B | $7.17B |
| Cash | $10.73B | $17.18B |
| Total Debt | $67.09B | $8.17B |
Data sourced from Yahoo Finance. Green highlights indicate better performance for that metric. Use the interactive tool for real-time data.
Business Model Comparison
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 →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 →SWOT Analysis Comparison
Strengths
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.
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.
Weaknesses
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
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
Opportunities
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.
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
Threats
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
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
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Open Comparison ToolWalmart vs Costco Wholesale: FAQ
- Is Walmart bigger than Costco Wholesale?
- By market capitalization, Walmart is larger at $987.04B vs Costco Wholesale's $443.11B.
- Which has better profit margins — Walmart or Costco Wholesale?
- 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 Walmart and Costco Wholesale operate in?
- Walmart operates in the Consumer Defensive sector (Discount Stores). Costco Wholesale operates in the Consumer Defensive sector (Discount Stores).
- How does Walmart's revenue compare to Costco Wholesale's?
- Walmart generates $713.16B in annual revenue (TTM) while Costco Wholesale generates $280.39B. Walmart is the larger company by revenue as of 2026.