Better Growth Stock: Costco vs. Visa

• Costco is a retail seller with an incredible history of growth.

• VISA is a paid processed processor.

• Both stocks are expensive, but one looks more expensive than the other.

• 10 shares we love better than the visa ›

Consumers can use a Visa (Nyse: v) Shopping card in retail stores Warehouse Club Costeco (Nasdak: cost)But should investors buy any of these growth shares? The answer is not quite clear.

Some investors should not have any of the shares. Here is the reason that one of these known stocks is probably a better purchase than the other.

Visa is a payment processor, putting it in the financial sector. It collects small fees to facilitate financial transactions through the cards that were placed in their logo.

Although any individual fees of one small treatment, the company deals with a huge number of transactions. As a result, small drawings add large money. In the second quarter of 2025, Visa processed 60.7 billion transactions, an increase of 9 % on an annual basis, increasing revenues of 9 % to 9.6 billion dollars.

Costco is a warehouse club store, which is issued a credit card in the visa system. Unlike traditional retail stores, Costco customers pay annual shopping fees in company stores. These fees are like installments, given the rate of customer regeneration by approximately 90 %.

Membership fees end about half of the operating company’s income because there is a small cost related to it. In the third quarter of 2025, Costco’s revenues jumped by 8 % to nearly 62 billion dollars.

Both visa and Costco companies are well managed. It is worth noting that investors have many reasons for the belief that both of them will remain strong and strong.

Visa, for example, is likely to continue to take advantage of the shift towards digital transactions and card payments. Meanwhile, Costco continues to expand the base of its stores, thanks to the strong demand in the current sites.

There is a very important issue to monitor both Visa and Costco, and this evaluation. Growth shares are often granted a distinctive price sign, so this is not horrific, but it should not be ignored either.

If you are an investor with valuable, it is possible that you do not want to own any of these shares. The visa pays profit distributions that give 0.7 % while Costco gives less than 0.6 %.

How much is the cost of these shares? Visa is to sell (P/S), price price ratios to profits (P/E), and the price ratios to the book (P/B) are all higher than its average for five years. Costco P/S, P/E and P/B ratios are also higher than a five -year average.