Costco Wholesale (NASDAQ:COST) & BBB Foods (NYSE:TBBB) Head-To-Head Review

BBB Foods (NYSE:TBBB) and Costco Wholesale (NASDAQ:COST) are both consumer staples companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, profitability, risk, analyst recommendations, dividends, institutional ownership and valuation.

Insider and Institutional Ownership

8.4% of BBB Foods shares are owned by institutional investors. Comparatively, 68.5% of Costco Wholesale shares are owned by institutional investors. 0.1% 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 will outperform the market over the long term.

Earnings and Valuation

This table compares BBB Foods and Costco Wholesale”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BBB Foods	$4.08 billion	1.49	-$148.23 million	($1.61)	-31.92
Costco Wholesale	$275.24 billion	1.44	$8.10 billion	$19.88	45.04

Costco Wholesale has higher revenue and earnings than BBB Foods. BBB Foods is trading at a lower price-to-earnings ratio than Costco Wholesale, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

BBB Foods has a beta of 0.05, indicating that its stock price is 95% less volatile than the S&P 500. Comparatively, Costco Wholesale has a beta of 0.86, indicating that its stock price is 14% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
BBB Foods	-3.68%	-72.47%	-10.71%
Costco Wholesale	3.01%	28.04%	10.63%

Analyst Recommendations

This is a summary of current ratings and recommmendations for BBB Foods and Costco Wholesale, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BBB Foods	1	2	7	0	2.60
Costco Wholesale	1	11	22	0	2.62

BBB Foods currently has a consensus target price of $50.50, suggesting a potential downside of 1.74%. Costco Wholesale has a consensus target price of $1,052.65, suggesting a potential upside of 17.57%. Given Costco Wholesale’s stronger consensus rating and higher possible upside, analysts plainly believe Costco Wholesale is more favorable than BBB Foods.

Summary

Costco Wholesale beats BBB Foods on 13 of the 14 factors compared between the two stocks.

About BBB Foods

BBB Foods Inc., through its subsidiaries, operates a chain of grocery retail stores in Mexico. It offers household cleaning, personal hyenine, cosmetics and beauty, pharmacy, and general merchandise products, as well as jellies and desserts, foods and drinks, pet supplies, coffee, tea, chocolates, breads, dry and frozen foods, snacks and sweets, and toilet papers and napkins. The company also provides branded, private label, and spot products. It serves low-to-middle income households through online channels. BBB Foods Inc. was incorporated in 2004 and is headquartered in Mexico City, Mexico.

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.