Q: Which would be your first choice between COST and DOL for initiating a full position today with a long term (multi year) horizon, and can you provide a bit of comparison between the two.
5i Research Answer:
We like both names, and would be very comfortable holding either for a long-term time horizon. We think both can be owned, but if we had to choose just one, we would give COST the slight edge given its larger size, more dominant global position, and while it trades at a high valuation (49X forward earnings), DOL is also fairly high at 41X forward earnings.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in COST.