Better Buy: Costco vs. Big Lots

Big Lots (NYSE: BIG) and Costco (NASDAQ: COST) don't share many core investment characteristics even though they both operate in the big-box retailing space. Yet the two chains have recently been added to many investors' watch lists thanks to spiking sales volumes during the COVID-19 pandemic. Both Costco and Big Lots could see persistent sales lifts as consumers prioritize bulk shopping and home furnishings in an era of limited in-person retailing and more stay-at-home time.

With that in mind, let's stack these two retailers against each other to see which might make the better long-term investment.

Image source: Getty Images.

Source Fool.com