COST vs GOOGL: Which Is the Better Buy?
Side-by-side comparison of Costco Wholesale Corporation and Alphabet Inc. — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-09-25.
Costco Wholesale Corporation · Consumer Defensive
$896.48
+24.7% upside to fair value
Med Conviction
Grade B
High Quality
VS
Alphabet Inc. · Communication Services
$342.36
+16.6% 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 |
COST |
GOOGL |
| Current Price |
$896.48 |
$342.36 |
| Fair Value Estimate |
$1,117.50 |
$399.26 |
| Upside to Fair Value |
+24.7%
|
+16.6%
|
| Market Cap |
$397.6B |
$4,143.3B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
32.7x
|
12.9x
|
| Price / Sales |
1.3x
|
9.3x
|
| Price / FCF |
42.4x
|
78.1x
|
| Revenue Growth YoY |
+11.1%
|
+24.2%
|
| Gross Margin |
17.5%
|
60.9%
|
| Operating Margin |
3.9%
|
33.1%
|
| Return on Equity |
28.0%
|
50.8%
|
| Dividend Yield |
0.62% |
0.25% |
| FCF Yield |
2.36%
|
1.28%
|
| Analyst Consensus |
Strong Buy
|
Strong Buy
|
Investment Thesis
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…
Alphabet is the parent of Google Services (Search, YouTube, Android, Chrome, hardware, and the Play store), Google Cloud, and Other Bets, and it remains one of the highest-quality large-cap franchises in the market, with a TTM gross margin of 60.9%, TTM operating margin of 33.1%, TTM net margin of 54.8%, and a 50.8% return on equity. Revenue growth in the most recent quarter was 24.2% year over y…
Accumulation Zones
| Metric |
COST |
GOOGL |
| Zone Low |
$838.12 |
$299.44 |
| Zone High |
$949.88 |
$339.37 |
| In Buy Zone? |
Yes
|
No
|