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Learn the stock market › Read a stock chart › Lesson 6 of 6

How to compare two stocks fairly

Short answerCompare the change in percent, not the price in dollars. A simple way is to set both stocks to 100 on the same start date and draw them on one chart. Use prices adjusted for dividends and the same period for both, because the start date can decide which one looks better.

Costco and Walmart from 100

CostcoWalmart

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Both start at 100 on Nov 4, 2016. Prices adjusted for dividends.

The price in dollars says nothing

On Nov 6, 2026 one Costco share cost $1,053.56 and one Walmart share $125.52. That says nothing about which did better, nor which is more expensive. A share is a slice of a company, and companies are cut into different numbers of shares.

Set both to 100

Divide each day's price by the price on the start date and multiply by 100. Both then start at 100, and 150 means the stock has risen 50 percent since the start. The chart above does this for Costco and Walmart from Nov 4, 2016.

The start date decides

The same two stocks, counted back from Nov 6, 2026:

PeriodCostcoWalmart
Price on Nov 6, 2026$1,053.56$125.52
1 year+15%+24%
5 years+116%+167%
10 years+773%+543%

The start date changes the picture. Over ten years Costco moved +773% and Walmart +543%; over five years +116% against +167%, and over one year +15% against +24%.

So pick the period before you look, and compare several. A comparison that starts right after a crash in one of the stocks flatters that stock in hindsight.

Three more things

The same kind of prices. Both should be adjusted for dividends, or the stock that pays more looks worse than it did. The prices here are adjusted; the reason is in Splits and dividends in the chart.

Percent, not dollars. A rise from 100 to 200 is as large in percent as one from 1,000 to 2,000. Over long periods a log scale is fairest.

The same currency. A stock in euros and one in dollars also move with the exchange rate, as Currency and stocks shows. Compare with an index too, to see how the stocks did against the market as a whole.

Test yourself

Stock A costs $500 and stock B $50. On a chart that starts at 100 both now stand at 130. Which did better?

More numbers are on the Costco page.