Better Buy: Costco Vs. Target Stock
Costco Wholesale (NASDAQ: COST) and Target (NYSE: TGT) are two of the best-known retailers in the U.S. And while both companies are popular for offering a variety of goods at low prices, Costco relies on a lower operating margin and higher volumes, while Target usually has a higher operating margin because it sells a larger mix of discretionary products.
Therefore, it's no surprise that Target has been hit harder than Costco by supply chain disruptions and inflation. And Costco's recurring revenue stream from memberships, paired with its customer loyalty, adds another layer of protection amid economic uncertainty.
Here's the case for why both Costco and Target could be worth buying now.
Source Fool.com
