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 2026-09-25.
Costco Wholesale Corporation · Consumer Defensive
$896.48
+24.7% upside to fair value
Med Conviction
Grade B
High Quality
VS
The Home Depot, Inc. · Consumer Cyclical
$292.18
+44.2% upside to fair value
Med Conviction
Grade B
High Quality
QuantHub Verdict
HD has more upside to fair value
(+44.2%).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
COST |
HD |
| Current Price |
$896.48 |
$292.18 |
| Fair Value Estimate |
$1,117.50 |
$421.26 |
| Upside to Fair Value |
+24.7%
|
+44.2%
|
| Market Cap |
$397.6B |
$291.3B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
32.7x
|
14.7x
|
| Price / Sales |
1.3x
|
1.7x
|
| Price / FCF |
42.4x
|
19.2x
|
| Revenue Growth YoY |
+11.1%
|
+5.7%
|
| Gross Margin |
17.5%
|
33.2%
|
| Operating Margin |
3.9%
|
12.4%
|
| Return on Equity |
28.0%
|
102.7%
|
| Dividend Yield |
0.62% |
3.18% |
| FCF Yield |
2.36%
|
5.2%
|
| 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…
The Home Depot is the largest home-improvement retailer in the United States, operating a network of roughly 2,300 stores supported by about 472,400 full-time employees, and serving both do-it-yourself homeowners and professional contractors through stores, homedepot.com, and specialty sites such as blinds.com. The business quality is high: it generates a 102.7% return on equity, a 33.2% trailing…
Accumulation Zones
| Metric |
COST |
HD |
| Zone Low |
$838.12 |
$315.94 |
| Zone High |
$949.88 |
$358.07 |
| In Buy Zone? |
Yes
|
Yes
|