Better Buy: Costco vs. Dollar General

While investors might think retailing suffers during a recession, many sellers prosper under such conditions by offering necessities at low prices. Cost-conscious consumers flock to such stores.

Such is the case with Costco Wholesale (NASDAQ: COST) and Dollar General (NYSE: DG). Both offer price points and product lines that perform well during downturns as well as growth periods. The question for investors is which retail stock might serve investors better under current conditions.

Costco's business has become a standard for reliability. The big-box retailer, known for its low prices, has proved itself able to generate growth in just about any economic environment. Consumers flock to its upscale offerings in good times. When recessions hit, its low-cost necessities sell well.

Source Fool.com