COST vs GOOGL: Which Is the Better Buy?

Side-by-side comparison of Costco Wholesale Corporation and Alphabet Inc. โ€” fair value, conviction, valuation metrics, and QuantHub research signals. Updated 2026-04-10.
Costco Wholesale Corporation ยท Consumer Defensive
$1,002.88
-35.4% upside to fair value
Grade C High Quality
VS
Alphabet Inc. ยท Communication Services
$317.41
-4.5% upside to fair value
Grade D High Quality
QuantHub Verdict
GOOGL has more upside to fair value (-4.5%). GOOGL trades at a lower forward P/E (29.0x). These are model outputs โ€” not personalized investment advice. See all research โ†’
Valuation & Fundamentals
Metric COST GOOGL
Current Price $1,002.88 $317.41
Fair Value Estimate $648.03 $303.05
Upside to Fair Value -35.4% -4.5%
Market Cap $444.9B $3,839.7B
Forward P/E 52.1x 29.0x
EV / EBITDA 31.0x 21.5x
Price / Sales 1.6x 9.5x
Price / FCF 49.0x 52.4x
Revenue Growth YoY +3.4% +11.3%
Gross Margin 12.9% 59.7%
Operating Margin 3.8% 32.0%
Return on Equity 28.8% 35.0%
Dividend Yield 0% 0%
FCF Yield 2.04% 1.91%
Analyst Consensus Strong Buy Strong Buy
Investment Thesis
COST โ€” Costco Wholesale Corporation
Costco Wholesale Corporation operates a global membership-based warehouse club model with over 900 warehouses across 14 countries, generating $254 billion in fiscal 2024 revenue. The company benefits from a durable competitive moat driven by scale advantages, a loyal membership base with high renewal rates, and superior employee retention through better wages and benefits. Despite steady revenue โ€ฆ
GOOGL โ€” Alphabet Inc.
Alphabet Inc. operates as a global leader in internet content and information services, primarily through its dominant search engine, advertising platforms, and cloud computing services. The company benefits from durable competitive moats including browser and mobile OS dominance, strong brand recognition, and advanced AI infrastructure investments. Despite strong revenue growth of 11.3% year-oveโ€ฆ
Accumulation Zones
Metric COST GOOGL
Zone Low $486.02 $227.29
Zone High $550.83 $257.59
In Buy Zone? No No
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