COST vs GOOGL: Which Is the Better Buy?

Side-by-side comparison of Costco Wholesale Corporation and Alphabet Inc. β€” fair value, conviction, valuation metrics, and QuantHub research signals. Updated 2026-07-13.
Costco Wholesale Corporation Β· Consumer Defensive
$947.50
-1.4% upside to fair value
Grade C High Quality
VS
Alphabet Inc. Β· Communication Services
$357.18
-17.7% upside to fair value
Grade D High Quality
QuantHub Verdict
COST has more upside to fair value (-1.4%). GOOGL trades at a lower forward P/E (27.0x). These are model outputs β€” not personalized investment advice. See all research β†’
Valuation & Fundamentals
Metric COST GOOGL
Current Price $947.50 $357.18
Fair Value Estimate $933.84 $294.10
Upside to Fair Value -1.4% -17.7%
Market Cap $420.2B $4,320.1B
Forward P/E 47.6x 27.0x
EV / EBITDA 28.3x 20.0x
Price / Sales 1.4x 10.2x
Price / FCF 47.7x 67.0x
Revenue Growth YoY +11.6% +21.8%
Gross Margin 12.9% 60.4%
Operating Margin 3.8% 32.7%
Return on Equity 28.3% 39.0%
Dividend Yield 0% 0%
FCF Yield 2.1% 1.49%
Analyst Consensus Buy Strong Buy
Investment Thesis
COST β€” Costco Wholesale Corporation
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…
GOOGL β€” Alphabet Inc.
Alphabet Inc. operates as a global leader in internet content and information services, primarily through its Google platform, which dominates search and digital advertising. The company exhibits high business quality with a durable competitive moat supported by network effects, strong brand, and intangible assets. Alphabet's financials show robust profitability with a 39.0% ROE and strong margin…
Accumulation Zones
Metric COST GOOGL
Zone Low $700.38 $220.58
Zone High $793.76 $249.99
In Buy Zone? No No
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