L vs COST

If you are a stickler for value, Loblaw is quite a bit cheaper than Costco. However, there is no doubt Costco\'s business model is better. Not saying Loblaw is poor by any means, but Costco\'s \"flywheel\" is arguably the best business flywheel on the planet.
For this reason, growth and valuations are going to be drastically different between the two. Loblaw is trading at 13.3x free cash flows while Costco is trading at 37x, nearly triple.
If you were to ask me where I see more runway for growth over the long-term, I would say Costco. However, from a valuation standpoint there is little doubt Loblaw is the more attractive valuation. And with higher valuations often comes higher risk if growth trajectories don\'t come to fruition. Loblaw is also an ultra low-beta stock, so historically it has been way less volatile than Costco.
Keep in mind as well, owning both of these companies is not farfetched either. They serve different purposes, Costco more of a bulk shopping experience that includes many non-grocery items, where Loblaw, outside of some of its stores like Superstore, primarily focuses on grocery.