Question

Determine whether Costco or Sam’s Club are the better company. Which company would you buy stock...

Determine whether Costco or Sam’s Club are the better company. Which company would you buy stock in and why?

Homework Answers

Answer #1

Costco and Sam’s Club have parallel business models. They charge basically the same prices for their memberships and the similar prices for their goods. Yet Costco usually fares better. The reason is that Sam’s Club may be shooting themselves in the foot with their counterpart Walmart. Many of their likely customers simply shop at Walmart for many of the same deals, but without the trouble of membership

Winner : Costco

  • Large and varied Products at Costco
  • Cash Back
  • Treats employees well

Also, in light of the January, 2018 news of Sam’s Club closing 63 stores and laying off 10,000 employees without warning

I would buy Costco Stock because of the following reasons:

  • Long term Bet
  • Loyality
  • Growing
  • moreover according to a report Costco Stock Surges as Walmart Confirms Sam's Club Closings.
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