TGT vs. COST

Last updated Jun 4, 2026

TGT (Target Corporation) and COST (Costco Wholesale Corporation) are both stocks. Both operate in the Discount Stores industry within the Consumer Defensive sector. Over the past 10 years, TGT returned 9.40%/yr vs 22.34%/yr for COST. At a 0.46 correlation, their price movements are largely independent.

Performance

TGT vs. COST - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Target Corporation (TGT) and Costco Wholesale Corporation (COST). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, TGT achieves a 30.19% return, which is significantly higher than COST's 11.85% return. Over the past 10 years, TGT has underperformed COST with an annualized return of 9.40%, while COST has yielded a comparatively higher 22.34% annualized return.

TGT

• 1D: 1.32%
• 1M: -1.39%
• YTD: 30.19%
• 6M: 39.97%
• 1Y: 36.00%
• 3Y*: 1.53%
• 5Y*: -8.89%
• 10Y*: 9.40%

COST

• 1D: 0.79%
• 1M: -5.03%
• YTD: 11.85%
• 6M: 4.58%
• 1Y: -8.37%
• 3Y*: 25.00%
• 5Y*: 21.24%
• 10Y*: 22.34%

*Multi-year figures are annualized to reflect compound growth (CAGR)

TGT vs. COST - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
TGT Target Corporation	30.19%	-24.50%	-2.27%	-1.35%	-34.24%	32.91%	40.47%	100.17%	4.67%	-5.84%
COST Costco Wholesale Corporation	11.85%	-5.39%	39.62%	49.00%	-19.05%	51.82%	32.67%	45.70%	10.60%	22.37%

Correlation

The correlation between TGT and COST is 0.28, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.28
Correlation (3Y) Calculated over the trailing 3-year period	0.24
Correlation (5Y) Calculated over the trailing 5-year period	0.37
Correlation (10Y) Calculated over the trailing 10-year period	0.41
Correlation (All Time) Calculated using the full available price history since Sep 23, 1993	0.46

The correlation between TGT and COST shifts across timeframes, from 0.24 (3 years) to 0.46 (all time), reflecting how their relationship changes across market environments.

Fundamentals

EPS TGT : $7.93 COST : $26.51
PE Ratio TGT : 15.73 COST : 36.29
PS Ratio TGT : 0.54 COST : 1.09
Total Revenue (TTM) TGT : $105.47B COST : $293.59B
Gross Profit (TTM) TGT : $27.05B COST : $11.12B
EBITDA (TTM) TGT : $8.20B COST : $12.48B

Return for Risk

TGT vs. COST — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

TGT

TGT Risk / Return Rank: 71
TGT Sharpe Ratio Rank: 75
TGT Sortino Ratio Rank: 70
TGT Omega Ratio Rank: 66
TGT Calmar Ratio Rank: 72
TGT Martin Ratio Rank: 72

COST

COST Risk / Return Rank: 22
COST Sharpe Ratio Rank: 21
COST Sortino Ratio Rank: 19
COST Omega Ratio Rank: 20
COST Calmar Ratio Rank: 26
COST Martin Ratio Rank: 23

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

TGT vs. COST - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Target Corporation (TGT) and Costco Wholesale Corporation (COST). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	TGT	COST	Difference
Sharpe ratio Return per unit of total volatility	1.19	-0.44	+1.63
Sortino ratio Return per unit of downside risk	1.75	-0.50	+2.25
Omega ratio Gain probability vs. loss probability	1.21	0.94	+0.27
Calmar ratio Return relative to maximum drawdown	1.78	-0.44	+2.23
Martin ratio Return relative to average drawdown	4.19	-0.88	+5.07
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

TGT vs. COST - Sharpe Ratio Comparison

The current TGT Sharpe Ratio is 1.19, which is higher than the COST Sharpe Ratio of -0.44. The chart below compares the historical Sharpe Ratios of TGT and COST, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	TGT	COST	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.19	-0.44	+1.63
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.25	0.94	-1.19
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.28	1.02	-0.74
Sharpe Ratio (All Time) Calculated using the full available price history	0.35	0.59	-0.24

Drawdowns

TGT vs. COST - Drawdown Comparison

The maximum TGT drawdown since its inception was -64.40%, which is greater than COST's maximum drawdown of -53.39%. Use the drawdown chart below to compare losses from any high point for TGT and COST.

Drawdown Indicators

	TGT	COST	Difference
Max Drawdown Largest peak-to-trough decline	-64.40%	-53.39%	-11.01%
Max Drawdown (1Y) Largest decline over 1 year	-20.27%	-18.95%	-1.32%
Max Drawdown (3Y) Largest decline over 3 years	-49.78%	-20.74%	-29.04%
Max Drawdown (5Y) Largest decline over 5 years	-64.40%	-31.40%	-33.00%
Max Drawdown (10Y) Largest decline over 10 years	-64.40%	-31.40%	-33.00%
Current Drawdown Current decline from peak	-45.86%	-12.11%	-33.75%
Average Drawdown Average peak-to-trough decline	-17.08%	-13.36%	-3.72%
Ulcer Index Depth and duration of drawdowns from previous peaks	8.62%	9.86%	-1.24%

Volatility

TGT vs. COST - Volatility Comparison

Target Corporation (TGT) has a higher volatility of 10.69% compared to Costco Wholesale Corporation (COST) at 8.05%. This indicates that TGT's price experiences larger fluctuations and is considered to be riskier than COST based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	TGT	COST	Difference
Volatility (1M) Calculated over the trailing 1-month period	10.69%	8.05%	+2.64%
Volatility (6M) Calculated over the trailing 6-month period	21.01%	14.83%	+6.18%
Volatility (1Y) Calculated over the trailing 1-year period	30.44%	19.12%	+11.32%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	35.44%	22.73%	+12.71%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	33.25%	21.95%	+11.30%

Dividends

TGT vs. COST - Dividend Comparison

TGT's dividend yield for the trailing twelve months is around 3.65%, more than COST's 0.56% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
COST Costco Wholesale Corporation	0.56%	0.59%	0.49%	2.87%	0.76%	0.54%	3.38%	0.86%	1.08%	4.81%	1.09%	4.06%
TGT Target Corporation	3.65%	4.62%	3.28%	3.06%	2.66%	1.37%	1.52%	2.03%	3.81%	3.74%	3.21%	2.97%

Financials

TGT vs. COST - Profitability Comparison

The chart below illustrates the profitability comparison between Target Corporation and Costco Wholesale Corporation over time, highlighting three key metrics: Gross Profit Margin, Operating Margin, and Net Profit Margin.

TGT - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Target Corporation reported a gross profit of 6.46B and revenue of 24.53B. Therefore, the gross margin over that period was 26.4%.

COST - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Costco Wholesale Corporation reported a gross profit of -17.68B and revenue of 70.53B. Therefore, the gross margin over that period was -25.1%.

TGT - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Target Corporation reported an operating income of 1.30B and revenue of 24.53B, resulting in an operating margin of 5.3%.

COST - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Costco Wholesale Corporation reported an operating income of 2.82B and revenue of 70.53B, resulting in an operating margin of 4.0%.

TGT - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Target Corporation reported a net income of 942.00M and revenue of 24.53B, resulting in a net margin of 3.8%.

COST - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Costco Wholesale Corporation reported a net income of 2.19B and revenue of 70.53B, resulting in a net margin of 3.1%.

Frequently Asked Questions

Can I hold both TGT and COST in my portfolio?

TGT and COST have a correlation of 0.28, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, TGT or COST?

TGT has higher volatility (10.69%) compared to COST (8.05%). In terms of maximum drawdown, TGT dropped -64.40% vs COST's -53.39%.

Which has better risk-adjusted returns?

TGT currently has the higher Sharpe Ratio (1.19 vs -0.44), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.