Costco Wholesale (NASDAQ:COST) and Almacenes Éxito (NYSE:EXTO) Financial Contrast

Costco Wholesale (NASDAQ:COST) and Almacenes Éxito (NYSE:EXTO) are both retail/wholesale companies, but which is the better business? We will compare the two companies based on the strength of their dividends, valuation, earnings, analyst recommendations, profitability, institutional ownership and risk.

Institutional & Insider Ownership

68.5% of Costco Wholesale shares are owned by institutional investors. 0.2% of Costco Wholesale shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Dividends

Costco Wholesale pays an annual dividend of $4.64 per share and has a dividend yield of 0.6%. Almacenes Éxito pays an annual dividend of $0.04 per share and has a dividend yield of 0.9%. Costco Wholesale pays out 28.7% of its earnings in the form of a dividend. Costco Wholesale has increased its dividend for 21 consecutive years.

Profitability

This table compares Costco Wholesale and Almacenes Éxito’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Costco Wholesale	2.83%	30.02%	10.16%
Almacenes Éxito	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Costco Wholesale and Almacenes Éxito, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Costco Wholesale	0	7	20	0	2.74
Almacenes Éxito	0	0	0	0	N/A

Costco Wholesale presently has a consensus price target of $799.33, suggesting a potential downside of 2.23%. Given Costco Wholesale’s higher possible upside, analysts plainly believe Costco Wholesale is more favorable than Almacenes Éxito.

Valuation and Earnings

This table compares Costco Wholesale and Almacenes Éxito’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Costco Wholesale	$242.29 billion	1.50	$6.29 billion	$16.14	50.66
Almacenes Éxito	$4.90 billion	0.14	$25.20 million	N/A	N/A

Costco Wholesale has higher revenue and earnings than Almacenes Éxito.

Summary

Costco Wholesale beats Almacenes Éxito on 11 of the 13 factors compared between the two stocks.

About Costco Wholesale

Costco Wholesale Corporation, together with its subsidiaries, engages in the operation of membership warehouses in the United States, Puerto Rico, Canada, Mexico, Japan, the United Kingdom, Korea, Australia, Taiwan, China, Spain, France, Iceland, New Zealand, and Sweden. The company offers branded and private-label products in a range of merchandise categories. It offers merchandise, such as sundries, dry groceries, candies, coolers, freezers, deli, liquor, and tobacco; appliances, electronics, health and beauty aids, hardware, garden and patio products, sporting goods, tires, toys and seasonal products, office supplies, automotive care products, postages, tickets, apparel, small appliances, furniture, domestics, housewares, special order kiosks, and jewelry; and meat, produce, service deli, and bakery products. The company also operates gasoline, pharmacies, optical, food courts, hearing-aid centers, and tire installation centers; and offers business delivery, travel, grocery, and various other services online. It also operates e-commerce websites. The company was formerly known as Costco Companies, Inc. and changed its name to Costco Wholesale Corporation in August 1999. Costco Wholesale Corporation was founded in 1976 and is based in Issaquah, Washington.

About Almacenes Éxito

Almacenes Éxito S.A. operates as a retail commerce company in South America. The company operates a chain of retail stores primarily under the Éxito, Carulla, Surtimax, Super Inter, Surti Mayorista, Libertad, Mini Libertad, Devoto, Disco, and Géant brands. It is also involved in the online commerce activities. In addition, the company engages in the credit facilities, insurance, money transfers and remittances, mobile phone services, trade tourist package trips and tickets, repair and maintain furnishings, paperwork, and energy trade activities; acquisition and building commercial premises for establishing stores, malls, or other locations; investing in property, promoting, and developing various kinds of real estate projects; and leasing of premises. Further, it invests in shares, bonds, trade papers, and other securities; enters into firm factoring agreements; and distributes oil-based liquid fuels through service stations, as well as alcohols, biofuels, and natural gas for vehicles and other fuels used in the automotive, industrial, fluvial, maritime, and air transport sectors. Almacenes Éxito S.A. was founded in 1905 and is headquartered in Envigado, Colombia. As of January 19, 2024, Almacenes Éxito S.A. operates as a subsidiary of Super Selectos El Salvador.