Apple vs Costco Wholesale Which Is Stronger?

Apple Inc. and Costco Wholesale Corporation are two of the most well-known and successful companies in the world. Apple, known for its innovative technology products, has a strong presence in the global tech market. On the other hand, Costco, a leading membership-based warehouse club retailer, has a strong customer base and steady growth in the retail industry. Both companies have outperformed the market in recent years, attracting investors looking for stable and profitable stocks. Let's dive deeper into the performance and potential of Apple versus Costco Wholesale stocks.

Apple or Costco Wholesale?

When comparing Apple and Costco Wholesale, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Apple and Costco Wholesale.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Apple has a dividend yield of 0.4%, while Costco Wholesale has a dividend yield of 1.97%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Apple reports a 5-year dividend growth of -19.56% year and a payout ratio of 16.25%. On the other hand, Costco Wholesale reports a 5-year dividend growth of 53.71% year and a payout ratio of 114.19%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Apple P/E ratio at 40.16 and Costco Wholesale's P/E ratio at 57.97. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Apple P/B ratio is 66.10 while Costco Wholesale's P/B ratio is 17.96.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Apple has seen a 5-year revenue growth of 0.82%, while Costco Wholesale's is 0.69%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Apple's ROE at 137.87% and Costco Wholesale's ROE at 33.45%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $246.24 for Apple and $965.73 for Costco Wholesale. Over the past year, Apple's prices ranged from $164.08 to $250.80, with a yearly change of 52.85%. Costco Wholesale's prices fluctuated between $640.50 and $1007.80, with a yearly change of 57.35%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.