Best Stock to Buy Right Now: Costco vs. Dollar Tree

Consumers are looking for bargains today. That fact is highlighted by Dollar Tree (NASDAQ: DLTR), which is seeing more and more shoppers from higher income brackets. However, Costco (NASDAQ: COST) is also a leader in providing products at attractive prices. Which one is the better investment right now?Costco is a club store, so consumers pay a yearly membership fee for the privilege of shopping in the retailer's warehouses. That fee makes up roughly half of the company's operating income. There is very little cost associated with memberships, so that income flows right into gross profit and earnings. However, this annuity-like income source also empowers the company to accept lower margins on the goods it sells. That allows Costco to offer prices so low that customers want to keep coming back, and paying their membership fees.Image source: Getty Images.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool