Better Buy: Costco vs. Best Buy
While both Best Buy (NYSE: BBY) and Costco (NASDAQ: COST) have done better than most other retailers during the pandemic, only one reigns supreme. Costco is by far and away a better buy. The wholesale giant has a much broader business and still manages to prove retail exposure to a lot of electronics. Best Buy has indeed seen strong increases in its e-commerce sales during the era of social distancing, but its top-line growth doesn't compare to Costco.
Let's look at the numbers.
Costco's annual revenue growth rates are more consistent than Best Buy's. For the last three fiscal years, Costco returned sales growth of 8.68%, 9.73% and 7.86% respectively. Best Buy's last three fiscal years have had sales growth rates of 6.97%, 1.73%, and 1.77% respectively. Through those same fiscal time frames, Costco's net income growth averaged 15.74% annually. Best Buy's net income averaged 11.52% through its last three fiscal years, and was far more inconsistent. The company had a 17.23% decline in fiscal 2018 to $999 million.
Source Fool.com
