Costco vs Booking Holdings

Costco Wholesale and Booking Holdings Inc. are compared on this page, examining their business models, financial performance, and market context in a neutral, accessible way. Educational content, not financial advice.

Comparison Snapshot

Key Financial Metrics

COST

Metric

BKNG

$433.96B

Market Cap

$164.63B

4.35%

Potential Profit

18.01%

Buy

Analyst Rating

Buy

Why It's Moving

Costco Shares Surge to 19-Week High on Robust Q1 Earnings and Analyst Upgrades

Q1 comparable sales hit 6.4% (7.1% excluding gas), driven by broad-based strength in non-foods, foods, and fresh categories, plus 20.5% digitally enabled growth.
Mizuho upgraded to Outperform with $1,000 target, spotlighting accelerating trade-up to premium memberships at 2-3x total adds and adding COST to Top Picks.
Deutsche Bank initiated Buy at $1,044, citing tailwinds like 2026 stimulus despite food disinflation and value-focused spending.

Sentiment:

🐃Bullish

Booking Holdings rides earnings anticipation amid mixed insider signals and resilient travel demand.

Analysts forecast Q4 EPS of $48.59, up 16.94% year-over-year, signaling strong profitability amid normalizing travel demand.
Revenue expected at $6.12 billion, a 12% jump from last year, highlighting Booking's grip on flexible, multi-leg trip bookings.
Insider sales by executives like David Fogel (1,013 shares for $5.25M) on Jan. 15 add caution, even as institutional holders like Massachusetts Financial boost stakes.

Sentiment:

⚖️Neutral

Costco Shares Surge to 19-Week High on Robust Q1 Earnings and Analyst Upgrades

Q1 comparable sales hit 6.4% (7.1% excluding gas), driven by broad-based strength in non-foods, foods, and fresh categories, plus 20.5% digitally enabled growth.
Mizuho upgraded to Outperform with $1,000 target, spotlighting accelerating trade-up to premium memberships at 2-3x total adds and adding COST to Top Picks.
Deutsche Bank initiated Buy at $1,044, citing tailwinds like 2026 stimulus despite food disinflation and value-focused spending.

Sentiment:

🐃Bullish

Booking Holdings rides earnings anticipation amid mixed insider signals and resilient travel demand.

Analysts forecast Q4 EPS of $48.59, up 16.94% year-over-year, signaling strong profitability amid normalizing travel demand.
Revenue expected at $6.12 billion, a 12% jump from last year, highlighting Booking's grip on flexible, multi-leg trip bookings.
Insider sales by executives like David Fogel (1,013 shares for $5.25M) on Jan. 15 add caution, even as institutional holders like Massachusetts Financial boost stakes.

Sentiment:

⚖️Neutral

Investment Analysis

Costco

COST

Pros

Costco reported a revenue increase to $275.24 billion in 2025, up 8.17% year-over-year, showing strong top-line growth.
The company operates over 600 warehouses in the US with over 60% market share in the domestic warehouse club industry, indicating dominant competitive positioning.
Costco's membership warehouse model with a low-cost operating structure allows pricing below competitors, driving high sales volumes and strong profitability on thin margins.

Considerations

Discounted cash flow analysis suggests Costco stock is approximately 35.5% overvalued based on projected free cash flow and current market price.
As Costco matures in large markets like the US and Canada, it faces the risk of deteriorating cost leverage and slower margin expansion.
The stock currently trades at a high price-to-earnings multiple around 50 to 55, which may limit upside potential and increase valuation risk.

Booking Holdings

BKNG

Pros

Booking Holdings benefits from a diversified portfolio of leading travel reservation brands like Booking.com, enhancing global scale and market reach.
The company's online travel platform exposure positions it to capture growth in global travel demand recovery post-pandemic.
Strong cash flow generation supports sustained investments in technology and potential shareholder returns.

Considerations

Booking Holdings is highly sensitive to macroeconomic and geopolitical risks which can significantly impact travel volumes and profitability.
The travel industry remains vulnerable to cyclical downturns and unpredictable regulatory environments that could pressure revenues.
Competitive pressures from both established and emerging digital travel platforms create execution risks and require ongoing innovation investment.

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