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 2026-04-11.
Costco Wholesale Corporation · Consumer Defensive
$1,002.88
-35.4% upside to fair value
Grade C
High Quality
VS
The Home Depot, Inc. · Consumer Cyclical
$337.34
+12.1% upside to fair value
Med Conviction
Grade B
QuantHub Verdict
HD has more upside to fair value
(+12.1%).
HD trades at a lower forward P/E
(23.0x).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
COST |
HD |
| Current Price |
$1,002.88 |
$337.34 |
| Fair Value Estimate |
$648.03 |
$378.00 |
| Upside to Fair Value |
-35.4%
|
+12.1%
|
| Market Cap |
$444.9B |
$336.0B |
| Forward P/E |
52.1x
|
23.0x
|
| EV / EBITDA |
31.0x
|
18.1x
|
| Price / Sales |
1.6x
|
2.3x
|
| Price / FCF |
49.0x
|
29.7x
|
| Revenue Growth YoY |
+3.4%
|
+3.2%
|
| Gross Margin |
12.9%
|
33.3%
|
| Operating Margin |
3.8%
|
12.7%
|
| Return on Equity |
28.8%
|
110.5%
|
| Dividend Yield |
0% |
2.44% |
| FCF Yield |
2.04%
|
3.37%
|
| Analyst Consensus |
Strong Buy
|
Buy
|
Investment Thesis
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 …
Home Depot remains the world's largest home improvement retailer with 2,350+ stores, dominant 52% market share, and a rapidly growing Pro contractor segment bolstered by the SRS Distribution acquisition. The stock has declined 21% from its $427 high to $337, but now trades at 2.28x P/S, near the 5-year median of 2.31x, and 26.5x P/E which is above the 5-year median of 23.5x. EPS declined 4.6% in …
Accumulation Zones
| Metric |
COST |
HD |
| Zone Low |
$486.02 |
$285.00 |
| Zone High |
$550.83 |
$320.00 |
| In Buy Zone? |
No
|
No
|