ADBE vs COST: Which Is the Better Buy?
Side-by-side comparison of Adobe Inc. and Costco Wholesale Corporation — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-04-16.
Adobe Inc. · Technology
$248.16
+163.1% upside to fair value
High Conviction
Grade B
VS
Costco Wholesale Corporation · Consumer Defensive
$1,002.88
-35.4% upside to fair value
Grade C
High Quality
QuantHub Verdict
ADBE has more upside to fair value
(+163.1%).
ADBE trades at a lower forward P/E
(14.1x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
ADBE |
COST |
| Current Price |
$248.16 |
$1,002.88 |
| Fair Value Estimate |
$653.00 |
$648.03 |
| Upside to Fair Value |
+163.1%
|
-35.4%
|
| Market Cap |
$101.2B |
$444.9B |
| Forward P/E |
14.1x
|
52.1x
|
| EV / EBITDA |
—
|
31.0x
|
| Price / Sales |
4.1x
|
1.6x
|
| Price / FCF |
9.8x
|
49.0x
|
| Revenue Growth YoY |
+3.3%
|
+3.4%
|
| Gross Margin |
89.1%
|
12.9%
|
| Operating Margin |
36.6%
|
3.8%
|
| Return on Equity |
62.3%
|
28.8%
|
| Dividend Yield |
— |
0% |
| FCF Yield |
10.2%
|
2.04%
|
| Analyst Consensus |
Hold
|
Strong Buy
|
Investment Thesis
Adobe Inc. develops industry-leading creative software, digital experience platforms, and publishing tools, powering digital content creation and marketing for professionals worldwide. The business excels with high gross margins above 89%, a sticky subscription model driving recurring revenue over $17B ARR, and dominant moats in digital media, though it faces intensifying AI competition and slowi…
Costco Wholesale Corporation operates a global membership-based warehouse club model with over 900 warehouses across 14 countries, generating $254 billion in fiscal 2024 revenue. The company benefits from a durable competitive moat driven by scale advantages, a loyal membership base with high renewal rates, and superior employee retention through better wages and benefits. Despite steady revenue …
Accumulation Zones
| Metric |
ADBE |
COST |
| Zone Low |
$490.00 |
$486.02 |
| Zone High |
$555.00 |
$550.83 |
| In Buy Zone? |
Yes
|
No
|