Costco (COST) vs. Walmart (WMT): Which Retailing Giant Has a Wider Moat?

Costco Wholesale Corporation (NASDAQ:COST) and Walmart Inc. (NASDAQ:WMT) have returned -0.71% and -5.38%, respectively, during the last six months, as of October 15. This compares to a 21.5% return for the Insider Monkey Billionaire Index and 15.74% for the State Street SPDR S&P 500 ETF Trust. Costco and Walmart have been ahead of the competition for a while, but both retail giants have different ways to go about it. Costco gets customers to keep coming back through its membership model, low prices, and popular Kirkland Signature brand. Walmart has a different opportunity. It can use its huge customer base and store network to grow its online business, advertising, and third-party marketplace.