Considering the two stocks' paths in 2023, investors have some differing expectations for wholesale retailers Costco Wholesale (NASDAQ: COST) and BJ's Wholesale Club (NYSE: BJ). Costco, the industry leader, has trounced the market so far in 2023, roughly doubling the 12% increase in the S&P 500. Its smaller peer is up just 7% through early October.

The warehouse retailing niche is an attractive one to consider during rocky economic times like these. Customer traffic tends to hold up well for these stores even as shoppers slow spending in more discretionary areas like home furnishings, consumer electronics, and jewelry. Warehouse clubs also enjoy steadier earnings than their traditional retailing peers, thanks to subscription fees.

But which of these two stocks is the better buy right now? Let's dive in.

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Source Fool.com