Owning Costco (NASDAQ: COST) or Walmart (NYSE: WMT) stock today might seem risky, given the uncertainty around tariffs and economic growth. Retailers are among the first to notice when consumers are pulling back on spending, often by trading down to cheaper brands and limiting discretionary purchases. Yet, these two retailing giants have proven that they can maintain customer traffic through a wide range of selling conditions. Their sales often do better, in fact, when shoppers are looking to save money.
Those factors help explain why both Costco and Walmart stock are outperforming the market so far in 2025. But which one is the better fit today? That depends on your preferences around value, cash returns, and growth potential. Let’s take a closer look.
Costco is the clear leader in terms of revenue growth. Comparable-store sales rose 8% last quarter, with Walmart’s gain clocking in at 5%. Zoom out, and the picture doesn’t change. Costco expanded sales by 8% over the last three quarters, and Walmart notched a 5% increase in fiscal 2025. The warehouse retailing titan’s lead is driven by factors like its loyal base of subscribers and a merchandise strategy that spans the entire pricing range (from $1.50 hot dogs to gold bars selling for $3,400).