Better Growth Stock: Visa vs. Costco

Investors looking for growth stocks have to come to grips with valuation. Buying stock in a fast-growing business is fine, but paying too much for even a great company can turn it into a bad investment. Keep that in mind when you look at growth stocks Visa (NYSE: V) and Costco (NASDAQ: COST) today. Here's what you need to consider before you buy.Costco is a global retailer that operates club stores. To shop at Costco, a customer must pay a membership fee. Those fees cost the company very little, create an annuity-like income stream, and give the company the flexibility to accept lower margins on its products. Low product prices help keep its customers happy, leading to membership renewals. It's a virtuous cycle that has driven strong growth for Costco over time, as it also works to expand its geographic footprint.Image source: Getty Images.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool