Benzinga
Published Oct 27, 2023 17:00
Updated Oct 27, 2023 18:10
Industry Comparison: Evaluating Costco Wholesale Against Competitors In Food & Staples Retailing Industry
Benzinga - by Benzinga Insights, Benzinga Staff Writer.
In the ever-evolving and intensely competitive business landscape, conducting a thorough company analysis is of utmost importance for investors and industry followers. In this article, we will carry out an in-depth industry comparison, assessing Costco Wholesale (NASDAQ:COST) alongside its primary competitors in the Food & Staples Retailing industry. By meticulously examining key financial metrics, market positioning, and growth prospects, we aim to offer valuable insights to investors and shed light on company's performance within the industry.
Costco Wholesale Background Costco operates a membership-based, no-frills retail model, predicated on offering a select product assortment in bulk quantities at bargain prices. The firm avoids maintaining costly product displays by keeping inventory on pallets and limits distribution expenses by storing its inventory at point of sale in the warehouse. Given Costco's frugal cost structure, the firm is able to price its merchandise below competing retailers, driving high sales volume per warehouse and allowing the retailer to generate strong profits on thin margins. Costco operates 591 warehouses in the United States and boasts over 60% market share in the domestic warehouse club industry. Internationally, Costco operates another 270 warehouses, primarily in markets such as Canada, Mexico, Japan, and the U.K.
Costco Wholesale Corp | 38.65 | 9.67 | 1 | 8.88% | $3.71 | $9.72 | 9.5% |
Walmart Inc | 31.11 | 5.47 | 0.69 | 10.39% | $14.27 | $39.78 | 5.74% |
Target Corp | 15.21 | 4.27 | 0.47 | 7.08% | $1.9 | $6.97 | -4.85% |
Dollar General Corp | 12.39 | 4.21 | 0.69 | 7.67% | $0.9 | $3.04 | 3.93% |
Dollar Tree Inc | 19.79 | 2.65 | 0.82 | 2.24% | $0.49 | $2.14 | 8.23% |
BJ's Wholesale Club Holdings Inc | 18.89 | 7.65 | 0.49 | 11.12% | $0.26 | $0.9 | -2.75% |
Sendas Distribuidora SA | 17.29 | 3.82 | 0.26 | 3.85% | $1.15 | $2.56 | 20.26% |
Pricesmart Inc | 19.31 | 2.07 | 0.52 | 2.73% | $0.06 | $0.18 | 6.39% |
Almacenes Exito SA | 432.38 | 0.72 | 0.22 | -0.1% | $306.87 | $1339.43 | 8.52% |
Average | 70.8 | 3.86 | 0.52 | 5.62% | $40.74 | $174.38 | 5.68% |
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.dividend-frequency { font-size: 12px; color: #6c757d; } By conducting an in-depth analysis of Costco Wholesale, we can identify the following trends:
The debt-to-equity (D/E) ratio helps evaluate the capital structure and financial leverage of a company.
Considering the debt-to-equity ratio in industry comparisons allows for a concise evaluation of a company's financial health and risk profile, aiding in informed decision-making.
When examining Costco Wholesale in comparison to its top 4 peers with respect to the Debt-to-Equity ratio, the following information becomes apparent:
This article was generated by Benzinga's automated content engine and reviewed by an editor.
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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