AMZN vs COST: Which Is the Better Buy?
Side-by-side comparison of Amazon.com, Inc. and Costco Wholesale Corporation — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-07-08.
Amazon.com, Inc. · Consumer Cyclical
$242.67
+22.0% upside to fair value
Grade B
High Quality
VS
Costco Wholesale Corporation · Consumer Defensive
$947.50
-1.4% upside to fair value
Grade C
High Quality
QuantHub Verdict
AMZN has more upside to fair value
(+22.0%).
AMZN trades at a lower forward P/E
(28.7x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
AMZN |
COST |
| Current Price |
$242.67 |
$947.50 |
| Fair Value Estimate |
$295.95 |
$933.84 |
| Upside to Fair Value |
+22.0%
|
-1.4%
|
| Market Cap |
$2,610.4B |
$420.2B |
| Forward P/E |
28.7x
|
47.6x
|
| EV / EBITDA |
14.4x
|
28.3x
|
| Price / Sales |
3.5x
|
1.4x
|
| Price / FCF |
-1056.0x
|
47.7x
|
| Revenue Growth YoY |
+16.6%
|
+11.6%
|
| Gross Margin |
50.6%
|
12.9%
|
| Operating Margin |
11.5%
|
3.8%
|
| Return on Equity |
23.3%
|
28.3%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
—
|
2.1%
|
| Analyst Consensus |
Strong Buy
|
Buy
|
Investment Thesis
Amazon.com, Inc. operates a diversified platform with core engines in retail, AWS cloud services, and advertising, leveraging a strong competitive moat driven by scale, logistics, and technology leadership. The company exhibits high business quality with 23.3% ROE, 16.6% revenue growth, and 76.7% earnings growth in the most recent quarter, supported by a widening moat in e-commerce and cloud. Des…
Costco Wholesale Corporation operates as a membership-only warehouse club offering a wide range of merchandise at low prices. The company exhibits high business quality with a durable competitive moat driven by cost advantages, strong brand loyalty, and efficient operations, reflected in a robust ROE of 28.3% and solid revenue growth of 11.6% in the most recent quarter. Despite these strengths, t…
Accumulation Zones
| Metric |
AMZN |
COST |
| Zone Low |
$221.96 |
$700.38 |
| Zone High |
$251.56 |
$793.76 |
| In Buy Zone? |
Yes
|
No
|