COST vs DHR: Which Is the Better Buy?

Side-by-side comparison of Costco Wholesale Corporation and Danaher Corporation β€” fair value, conviction, valuation metrics, and QuantHub research signals. Updated 2026-05-04.
Costco Wholesale Corporation Β· Consumer Defensive
$999.89
-19.1% upside to fair value
Grade D High Quality
VS
Danaher Corporation Β· Healthcare
$174.04
+13.2% upside to fair value
Grade B
QuantHub Verdict
DHR has more upside to fair value (+13.2%). DHR trades at a lower forward P/E (33.4x). These are model outputs β€” not personalized investment advice. See all research β†’
Valuation & Fundamentals
Metric COST DHR
Current Price $999.89 $174.04
Fair Value Estimate $808.71 $197.01
Upside to Fair Value -19.1% +13.2%
Market Cap $443.6B $123.2B
Forward P/E 51.9x 33.4x
EV / EBITDA 30.9x 20.3x
Price / Sales 1.6x 5.0x
Price / FCF 48.8x 23.3x
Revenue Growth YoY +9.2% +3.7%
Gross Margin 12.9% 60.7%
Operating Margin 3.8% 21.0%
Return on Equity 28.8% 7.1%
Dividend Yield 0% 0%
FCF Yield 2.05% 4.3%
Analyst Consensus Buy Strong Buy
Investment Thesis
COST β€” Costco Wholesale Corporation
Costco Wholesale Corporation operates a global membership-based warehouse club model that leverages scale, low costs, and superior employee retention to deliver consistent revenue and earnings growth. The company reported $269.9 billion in net sales for fiscal 2025 with an 8% year-over-year increase, driven by strong segments in Foods and Sundries and membership fees exceeding $5.65 billion in th…
DHR β€” Danaher Corporation
Danaher Corporation is a diversified healthcare company focused on medical diagnostics, life sciences, and biotechnology, generating approximately $24 billion in revenue with a strong recurring revenue base of over 81%. The company benefits from a high gross margin of 60.7% and solid operating margin of 21%, supported by a seasoned management team with a proven capital allocation track record inc…
Accumulation Zones
Metric COST DHR
Zone Low $606.53 $147.76
Zone High $687.40 $167.46
In Buy Zone? No No
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