Costco Wholesale vs Toto Which Performs Better?

Costco Wholesale and Toto are both well-known companies in the retail industry, but they have significant differences in their stock performance. Costco is a membership-based warehouse club known for its low prices and high-quality merchandise. Its stock has shown steady growth over the years, making it a popular choice among investors. On the other hand, Toto is a manufacturer of bathroom fixtures and plumbing supplies, with a more volatile stock performance. Investors considering these two stocks must weigh the stability of Costco against the potential for higher returns with Toto.

Costco Wholesale or Toto?

When comparing Costco Wholesale and Toto, 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 Costco Wholesale and Toto.

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. Costco Wholesale has a dividend yield of 1.96%, while Toto has a dividend yield of 0.01%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Costco Wholesale reports a 5-year dividend growth of 53.71% year and a payout ratio of 122.72%. On the other hand, Toto reports a 5-year dividend growth of 132.90% year and a payout ratio of 0.00%.

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 Costco Wholesale P/E ratio at 59.87 and Toto's P/E ratio at 17.21. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Costco Wholesale P/B ratio is 18.67 while Toto's P/B ratio is 1.35.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Costco Wholesale has seen a 5-year revenue growth of 0.69%, while Toto's is 0.18%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Costco Wholesale's ROE at 31.93% and Toto's ROE at 8.11%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $985.88 for Costco Wholesale and $26.87 for Toto. Over the past year, Costco Wholesale's prices ranged from $623.21 to $997.71, with a yearly change of 60.09%. Toto's prices fluctuated between $22.57 and $37.75, with a yearly change of 67.26%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.