AVGO vs COST: Which Is the Better Buy?
Side-by-side comparison of Broadcom Inc. and Costco Wholesale Corporation — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-09-25.
Broadcom Inc. · Technology
$354.99
+15.1% 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 |
AVGO |
COST |
| Current Price |
$354.99 |
$896.48 |
| Fair Value Estimate |
$408.70 |
$1,117.50 |
| Upside to Fair Value |
+15.1%
|
+24.7%
|
| Market Cap |
$1,688.9B |
$397.6B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
33.0x
|
32.7x
|
| Price / Sales |
18.9x
|
1.3x
|
| Price / FCF |
42.9x
|
42.4x
|
| Revenue Growth YoY |
+85.5%
|
+11.1%
|
| Gross Margin |
67.7%
|
17.5%
|
| Operating Margin |
48.3%
|
3.9%
|
| Return on Equity |
43.9%
|
28.0%
|
| Dividend Yield |
0.73% |
0.62% |
| FCF Yield |
2.33%
|
2.36%
|
| Analyst Consensus |
Strong Buy
|
Strong Buy
|
Investment Thesis
Broadcom is a diversified semiconductor and infrastructure software company led by CEO Hock Tan, with a portfolio spanning custom AI ASICs, networking, wireless, storage, and enterprise software. The business quality is high: TTM gross margin of 67.7%, TTM operating margin of 48.3%, TTM net margin of 42.9%, and ROE of 43.9% demonstrate exceptional profitability, while revenue growth of 85.5% and …
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 |
AVGO |
COST |
| Zone Low |
$306.52 |
$838.12 |
| Zone High |
$347.39 |
$949.88 |
| In Buy Zone? |
No
|
Yes
|