American Express offers lucrative rewards that justify high fees, while Costco operates on thin margins. Both companies attract customers with value, leading to strong loyalty. Amex targets millennials and Gen Z, adding 13M new cards in 2024. Despite fee hikes, Amex and Costco remain competitive with unique strategies. Amex’s reward expenses exceed fees, offset by merchant revenue, while Costco relies on membership profits and low-cost bulk sales. Both companies are well-managed, but Amex is a better buy due to lower valuation and consistent dividend growth.

Read more at Yahoo Finance: Meet the Secret Ingredient That Makes American Express and Costco Recession-Resistant Stocks to Buy Even If the S&P Sells Off in 2026.