Costco Wholesale Corporation vs Merck & Co., Inc. — how do they compare? Costco Wholesale Corporation trades at $916.7 (market cap $408.78B), while Merck & Co., Inc. trades at $123.51 (market cap $298.31B). The key difference: Costco Wholesale Corporation is the larger of the two by market cap, and Merck & Co., Inc. pays the higher dividend (2.82%). Which is the better fit depends on your goals.
| COST | MRK | |
|---|---|---|
Market Cap | $408.78B | $298.31B |
Sector | Consumer Staples | Health |
52-Week High | $1.09K | $129.52 |
52-Week Low | $849.63 | $77.60 |
Enterprise Value | $396.92B | $341.72B |
Dividend Yield | 0.64% | 2.82% |
Signals from Pluang's Aura AI — not financial advice
Costco (COST) trades at $916.54, down 1.07% on the day, with a bearish technical signal but strong fundamental performance. The company reported solid March sales growth of 11.3% year-over-year and has consistently beaten earnings expectations in recent quarters. Valuation metrics remain elevated with a P/E of 46.37 and P/S of 1.4, while profitability metrics show steady improvement with net income margin reaching 3.01% in 2025.
Despite high valuations, Costco maintains strong competitive positioning with membership fee revenue growth and expanding warehouse footprint. Key risks include valuation compression and competitive pressures. Analyst consensus remains strongly bullish with 65.5% buy ratings and a $1,120 price target representing 22% upside potential from current levels.
Merck & Co. (MRK) trades at $123.6, down 0.35% on the day, with a bullish technical outlook supported by moving averages and an oversold RSI. The company reported strong earnings beats in recent quarters, with 2025 revenue of $65.01B and net income of $18.25B, though Q1 2026 saw a loss. Analyst consensus is strongly bullish with a $137.30 price target, and recent news highlights Merck's acquisition of Terns Pharmaceuticals to bolster its oncology pipeline.
The outlook for MRK is positive, driven by robust profitability, strategic acquisitions, and Wall Street support. Key risks include integration challenges from the Terns deal, patent expirations, and macroeconomic pressures on healthcare spending. The stock offers a dividend yield with a recent $0.85 payout, but investors should monitor debt levels, which rose to 36.06% of assets in 2025.
Trailing returns across standard periods
The leading warehouse club, Costco has 815 stores worldwide (at the end of fiscal 2021), with most sales derived in the United States (72%) and Canada (14%). It sells memberships that allow customers to shop in its warehouses, which feature low prices on a limited product assortment. Costco mainly caters to individual shoppers, but roughly 20% of paid members carry business memberships. Food and sundries accounted for 40% of fiscal 2021 sales, with non-food merchandise 29%, warehouse ancillary and other businesses (such as fuel and pharmacy) nearly 17%, and fresh food 14%. Costco's warehouses average around 146,000 square feet
Read more on COST →Merck makes pharmaceutical products to treat several conditions in a number of therapeutic areas, including cardiometabolic disease, cancer, and infections. Within cancer, the firm's immuno-oncology platform is growing as a major contributor to overall sales. The company also has a substantial vaccine business, with treatments to prevent hepatitis B and pediatric diseases as well as HPV and shingles. Additionally, Merck sells animal health-related drugs. From a geographical perspective, just under half of the firm's sales are generated in the United States.
Read more on MRK →