General retail · 13/36 against 21/36 checks · to 2026-09-08
COST vs TGT.
CostcoSells bulk goods at thin margins to members who pay an annual fee.
TargetA general merchandise retailer with a large store network and own-brand goods.→Costco (COST) is 5.5 times the size of Target (TGT) at $403.6B against $73.9B, and on the filings Target passes more, 21 checks of 36 against 13.
Which passes more checks?
widest gap first→The two are furthest apart on Trend analysis, where Target passes 5 more of the six.
| COST | TGT | |
|---|---|---|
| Trend analysis | 0/6 | 5/6 |
| Value | 0/6 | 3/6 |
| Growth | 2/6 | 1/6 |
| Shareholder returns | 3/6 | 4/6 |
| Quality | 4/6 | 4/6 |
| Health | 4/6 | 4/6 |
| All checks | 13/36 | 21/36 |
→Costco turns over $293.6B to Target's $107.7B, 2.7 times as much. Costco keeps 3.0% of revenue as profit against 4.1% at Target.
Which is cheaper?
→Target is the cheaper of the two on earnings, 16.9x against 45.8x. Against their own histories, Costco is above its 31.2x median and Target is above its 13.4x.
| COST | TGT | |
|---|---|---|
| Share price | $910.18 | $162.71 |
| Market cap | $403.6B | $73.9B |
| P/E | 45.8x | 16.9x |
| P/E, own median own 5-year median / own 6-year median | 31.2x | 13.4x |
| P/S | 1.4x | 0.7x |
| Free cash flow yield | 2.2% | 6.0% |
Which is growing faster, COST or TGT?
| COST | TGT | |
|---|---|---|
| Revenue (TTM) | $293.6B | $107.7B |
| Revenue growth, 1 year | - | - |
| Revenue CAGR, 3 years | +6.6% | -1.3% |
| Net income (TTM) | $8.8B | $4.4B |
| Free cash flow (TTM) | $8.8B | $4.5B |
Which hands more back to owners?
→Both pay: Target yields the more at 2.8% against 0.5%. A yield rises when a price falls, so read it beside the payout checks in each report.
| COST | TGT | |
|---|---|---|
| Dividend yield | 0.5% | 2.8% |
| Payout ratio | 24.7% | 46.7% |
| Years of unbroken dividend | - | - |
Which keeps more of each sale?
→Target keeps more of each sale: gross margin of 19.3% against 5.6%, a gap of 14 points that flows into everything below it.
| COST | TGT | |
|---|---|---|
| Gross margin | 5.6% | 19.3% |
| Operating margin | 3.8% | 5.6% |
| Return on equity | 26.4% | 24.6% |
Which balance sheet is stronger?
→Costco carries much the lighter balance sheet, 0.17x of debt to equity against 0.80x - which matters most in the year a downturn arrives, not this one.
| COST | TGT | |
|---|---|---|
| Debt / equity | 0.17x | 0.80x |
| Interest coverage | 76.9x | 14.1x |
| Cash and short-term investments | $20.0B | $10.0B |
Where they differ most
the checks behind the gapTrend analysis: Target 5 ahead
- Price above the Kumo cloud $162.71 against a cloud top of $137.14
- Tenkan above the Kijun Tenkan $163.65 above the Kijun $157.57, 37 sessions since they crossed
- The Senkou cloud ahead is rising the Senkou spans already drawn for the next 26 sessions are rising
- Price above the Kumo cloud $910.18, below the cloud bottom of $949.04
- Price above the Tenkan and the Kijun $910.18 against the Tenkan (9 sessions) at $935.27 and the Kijun (26) at $942.40
- Tenkan above the Kijun Tenkan $935.27 below the Kijun $942.40, 7 sessions since they crossed
Value: Target 3 ahead
- Earnings yield beats a long bond (4%) 5.9% vs 4.0%
- Free cash flow yield above 3% 6.0% vs 3.0%
- Cheap on enterprise value 8.49 vs 14.00 (peer median)
- Earnings yield beats a long bond (4%) 2.2% vs 4.0%
- Free cash flow yield above 3% 2.2% vs 3.0%
- Cheap on enterprise value 28.23 vs 14.00 (peer median)