Target (NYSE: TGT) was one of the few large retailers to succeed amid competition from e-commerce. The threat Amazon (NASDAQ: AMZN) presented to the industry had investors questioning whether Target, Walmart (NYSE: WMT), and even Costco (NASDAQ: COST) could succeed in this new retail environment. Amid fears that Amazon would "take over" retail, these stores realized that their brick and mortar footprint could give them a competitive advantage if combined with an e-commerce strategy. This strategy propelled a comeback from more traditional retailers. Of these, one could argue that Target is the most surprising success story. It can't match the size and international footprint of Walmart. Moreover, it lacks a membership program and must stock a wider selection of merchandise than Costco. Still, despite these challenges, Target stock is in a position to profit retail investors more than its primary rivals. Here's a look at how Target compares to its three principal competitors. Target vs. Amazon From a stock perspective, Target and Amazon represent the two extremes among general retailers. Though it has come down over time, Amazon still supports a P/E ratio of just over 83. Target trades at barely 18 times earnings. Moreover, Amazon chooses to reinvest profits in its business. In contrast, Target boasts 52 years of dividend growth, and its dividend currently yields around 2.3%. IMAGE SOURCE: GETTY IMAGES Despite the cheaper cost, Target stock may present investors with a better retail opportunity. It has begun to outpace Amazon in digital sales. In the prior quarter, Target reported year-over-year digital comps growth of 31%. This compares to less than 18% for Amazon. Also, Target can offer customers same-day service through in-store pickup, Drive Up, or its delivery service Shipt. This may have influenced Amazon's decision to switch to one-day delivery. Amazon will remain a challenge for Target, and the fact that Amazon earns most of its profit outside of retail gives its e-commerce operations some breathing room. However, with Target's more extensive physical footprint and lower stock price, both shoppers and investors will probably keep Target on their radar. Target vs. Walmart Before Amazon rose to prominence, both Walmart and Target fought for retail supremacy. Each carved out its own niche within the U.S., but Amazon threatened both of them as customers began to buy more online. Today, both companies have succeeded in leveraging an omnichannel advantage to stay competitive against the e-commerce giant. Still, while they closely resemble each other in strategy and finances, Target comes out as the relatively cheaper investment. Walmart currently trades at a P/E ratio of about 23. This comes in significantly higher than Target's multiple of around 18. The two companies also have similar dividend philosophies, with Walmart hiking its payout for 45 straight years. However, Walmart's yield of 1.8% falls short of Target's 2.3% dividend return. Analysts also expect 10.15% in average annual earnings growth for Target over the next five years. Wall Street predicts a 5.18% average for Walmart over the same period. To be sure, Walmart's growth should continue, and these longtime rivals will remain so for the foreseeable future. However, with a lower valuation multiple, higher profit growth, and larger dividend payouts, investors have multiple reasons to choose Target stock over that of Walmart. Target vs. Costco In many respects, Costco outperforms Target. Costco's membership model has proven popular, with about 90% of members choosing to renew each year. This also gives Costco the leeway to offer its products at razor thin margins, something Target cannot match to the same degree. As a result, Costco stock has risen by over 47% from year-ago levels. However, this increase has left Costco stock trading at around 37 times earnings. This means that its P/E ratio is about double that of Target. Target stock seems to offer other advantages over that of Costco. While the warehouse retailer has posted 16 straight years of dividend hikes, Costco's yield comes in at just over 0.8%, barely one-third as much as the return on Target's payout. Furthermore, Target has begun to surge ahead of Costco on earnings growth. Costco has posted consistently robust sales increases in past years, averaging 11.8% per year over the last five years. However, for the next five years, Wall Street analysts believe that that rate of increase will slow to 7% per year, well below Target's 10.15% projected yearly increases for the same period. Costco will continue to pose a challenge to Target. Target's growing lead in sales growth could also prompt changes for Costco. However, with a lower stock price and higher growth and dividends, Target stands out as the current choice for investors. Consider Target stock Target's low P/E, higher dividend, and stronger profit growth make it an excellent choice for investing in generalized retailers. Admittedly, the choice of Target may come as a surprise to some. It remains much smaller than the other three companies. Target is also the only one of these companies to operate solely in the United States. It also lacks a membership or a cloud services division which can compensate for lower profits in retailing. However, like Walmart, it has successfully leveraged its retail locations and moved into e-commerce to make an omnichannel-driven comeback. Also, despite Wall Street expecting higher profit growth for Target than its rivals, it offers a lower P/E ratio and a higher dividend than its competitors. The rivalry between these four companies should remain vigorous for the foreseeable future. Still, when it comes to investing in one of these companies, Target stock stands out above its main rivals. 10 stocks we like better than TargetWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Target wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of December 1, 2019 John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Will Healy has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Amazon. The Motley Fool recommends Costco Wholesale. The Motley Fool has a disclosure policy.Source