Head-To-Head Survey: BBB Foods (NYSE:TBBB) versus Costco Wholesale (NASDAQ:COST)

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

Analyst Recommendations

This is a summary of recent recommendations for Costco Wholesale and BBB Foods, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Costco Wholesale	1	12	22	0	2.60
BBB Foods	1	2	7	0	2.60

Costco Wholesale currently has a consensus price target of $1,056.03, suggesting a potential upside of 14.92%. BBB Foods has a consensus price target of $50.50, suggesting a potential downside of 1.98%. Given Costco Wholesale’s higher probable upside, analysts plainly believe Costco Wholesale is more favorable than BBB Foods.

Insider & Institutional Ownership

68.5% of Costco Wholesale shares are owned by institutional investors. Comparatively, 8.4% of BBB Foods shares are owned by institutional investors. 0.1% of Costco Wholesale shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Costco Wholesale	$275.24 billion	1.48	$8.10 billion	$19.88	46.22
BBB Foods	$4.08 billion	1.50	-$148.23 million	($1.61)	-32.00

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

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

Profitability

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

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

Summary

Costco Wholesale beats BBB Foods on 12 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 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.