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 2026-09-25.
Amazon.com, Inc. · Consumer Cyclical
$251.19
+18.5% upside to fair value
Med Conviction
Grade B
High Quality
VS
Costco Wholesale Corporation · Consumer Defensive
$896.48
+24.7% upside to fair value
Med Conviction
Grade B
High Quality
QuantHub Verdict
COST has more upside to fair value
(+24.7%).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
AMZN |
COST |
| Current Price |
$251.19 |
$896.48 |
| Fair Value Estimate |
$297.67 |
$1,117.50 |
| Upside to Fair Value |
+18.5%
|
+24.7%
|
| Market Cap |
$2,702.1B |
$397.6B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
11.2x
|
32.7x
|
| Price / Sales |
3.5x
|
1.3x
|
| Price / FCF |
—
|
42.4x
|
| Revenue Growth YoY |
+19.6%
|
+11.1%
|
| Gross Margin |
50.8%
|
17.5%
|
| Operating Margin |
12.1%
|
3.9%
|
| Return on Equity |
30.5%
|
28.0%
|
| Dividend Yield |
0% |
0.62% |
| FCF Yield |
—
|
2.36%
|
| Analyst Consensus |
Strong Buy
|
Strong Buy
|
Investment Thesis
Amazon.com operates a vast global retail enterprise spanning online and physical stores, third-party seller services, advertising, subscription offerings, and Amazon Web Services, the world's largest cloud infrastructure provider. The business quality is high: trailing-twelve-month gross margin of 50.8%, operating margin of 12.1%, and net margin of 17.4% reflect a durable mix shift toward high-ma…
Costco Wholesale Corporation operates a global network of membership-based warehouse clubs, selling branded and private-label merchandise across the United States, Canada, Mexico, Japan, the United Kingdom, South Korea, Taiwan, Australia, Spain, France, Iceland, and China, supplemented by pharmacies, optical centers, food courts, hearing aid centers, tire installation, 636 gas stations, and e-com…
Accumulation Zones
| Metric |
AMZN |
COST |
| Zone Low |
$223.25 |
$838.12 |
| Zone High |
$253.02 |
$949.88 |
| In Buy Zone? |
Yes
|
Yes
|