COST vs HD: Which Is the Better Buy?
Side-by-side comparison of Costco Wholesale Corporation and The Home Depot, Inc. — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-07-13.
Costco Wholesale Corporation · Consumer Defensive
$947.50
-1.4% upside to fair value
Grade C
High Quality
VS
The Home Depot, Inc. · Consumer Cyclical
$343.30
+34.6% upside to fair value
Grade A
High Quality
QuantHub Verdict
HD has more upside to fair value
(+34.6%).
HD trades at a lower forward P/E
(24.3x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
COST |
HD |
| Current Price |
$947.50 |
$343.30 |
| Fair Value Estimate |
$933.84 |
$462.14 |
| Upside to Fair Value |
-1.4%
|
+34.6%
|
| Market Cap |
$420.2B |
$342.3B |
| Forward P/E |
47.6x
|
24.3x
|
| EV / EBITDA |
28.3x
|
16.5x
|
| Price / Sales |
1.4x
|
2.0x
|
| Price / FCF |
47.7x
|
23.9x
|
| Revenue Growth YoY |
+11.6%
|
+4.8%
|
| Gross Margin |
12.9%
|
33.1%
|
| Operating Margin |
3.8%
|
12.4%
|
| Return on Equity |
28.3%
|
113.3%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
2.1%
|
4.18%
|
| Analyst Consensus |
Buy
|
Buy
|
Investment Thesis
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…
The Home Depot, Inc. operates as a leading home improvement retailer in the consumer cyclical sector, leveraging a strong brand and cost advantages to maintain a durable competitive moat. Despite a modest revenue growth of 4.8% and a decline in earnings by 4.2% in the most recent quarter, the company exhibits exceptional profitability metrics including a 113.3% return on equity and solid margins …
Accumulation Zones
| Metric |
COST |
HD |
| Zone Low |
$700.38 |
$346.61 |
| Zone High |
$793.76 |
$392.82 |
| In Buy Zone? |
No
|
Yes
|