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 2026-05-20.
Costco Wholesale Corporation · Consumer Defensive
$999.89
-20.7% upside to fair value
Grade D
High Quality
VS
The Home Depot, Inc. · Consumer Cyclical
$302.44
+22.0% upside to fair value
Med Conviction
Grade B+
QuantHub Verdict
HD has more upside to fair value
(+22.0%).
HD trades at a lower forward P/E
(20.5x).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
COST |
HD |
| Current Price |
$999.89 |
$302.44 |
| Fair Value Estimate |
$793.02 |
$369.00 |
| Upside to Fair Value |
-20.7%
|
+22.0%
|
| Market Cap |
$443.6B |
$301.2B |
| Forward P/E |
51.9x
|
20.5x
|
| EV / EBITDA |
30.9x
|
16.5x
|
| Price / Sales |
1.6x
|
2.0x
|
| Price / FCF |
48.8x
|
26.6x
|
| Revenue Growth YoY |
+9.2%
|
+4.8%
|
| Gross Margin |
12.9%
|
33.3%
|
| Operating Margin |
3.8%
|
12.7%
|
| Return on Equity |
28.8%
|
110.5%
|
| Dividend Yield |
0% |
2.72% |
| FCF Yield |
2.05%
|
3.75%
|
| Analyst Consensus |
Buy
|
Buy
|
Investment Thesis
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…
Home Depot remains the world's largest home improvement retailer with 2,350+ stores, dominant 52% market share, and an expanding Pro contractor segment bolstered by the SRS Distribution acquisition. Q1 FY2026 results released May 19 beat both the top and bottom line, with revenue of $41.77B up 4.8% year over year and adjusted EPS of $3.43 versus the $3.41 consensus. Comp sales grew only 0.6% howe…
Accumulation Zones
| Metric |
COST |
HD |
| Zone Low |
$594.76 |
$276.75 |
| Zone High |
$674.07 |
$313.65 |
| In Buy Zone? |
No
|
Yes
|