COST vs HON: Which Is the Better Buy?
Side-by-side comparison of Costco Wholesale Corporation and Honeywell International Inc. — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-07-14.
Costco Wholesale Corporation · Consumer Defensive
$947.50
-1.4% upside to fair value
Grade C
High Quality
VS
Honeywell International Inc. · Industrials
$222.25
-5.5% upside to fair value
Grade D
High Quality
QuantHub Verdict
COST has more upside to fair value
(-1.4%).
HON trades at a lower forward P/E
(15.7x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
COST |
HON |
| Current Price |
$947.50 |
$222.25 |
| Fair Value Estimate |
$933.84 |
$210.05 |
| Upside to Fair Value |
-1.4%
|
-5.5%
|
| Market Cap |
$420.2B |
$70.4B |
| Forward P/E |
47.6x
|
15.7x
|
| EV / EBITDA |
28.3x
|
13.1x
|
| Price / Sales |
1.4x
|
1.9x
|
| Price / FCF |
47.7x
|
17.1x
|
| Revenue Growth YoY |
+11.6%
|
-6.9%
|
| Gross Margin |
12.9%
|
36.9%
|
| Operating Margin |
3.8%
|
14.9%
|
| Return on Equity |
28.3%
|
23.6%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
2.1%
|
5.84%
|
| Analyst Consensus |
Buy
|
Strong 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…
Honeywell International Inc. operates as a diversified industrial conglomerate with a strong presence in multiple sectors including aerospace, building technologies, and performance materials. The company demonstrates high business quality with a durable competitive moat supported by strong margins, a 23.6% return on equity, and solid free cash flow generation of $16.78 per share. However, recent…
Accumulation Zones
| Metric |
COST |
HON |
| Zone Low |
$700.38 |
$157.54 |
| Zone High |
$793.76 |
$178.54 |
| In Buy Zone? |
No
|
No
|