COST vs JNJ: Which Is the Better Buy?
Side-by-side comparison of Costco Wholesale Corporation and Johnson & Johnson — 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
Johnson & Johnson · Healthcare
$270.68
+5.7% upside to fair value
Med Conviction
Grade C
High Quality
QuantHub Verdict
COST has more upside to fair value
(+24.7%).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
COST |
JNJ |
| Current Price |
$896.48 |
$270.68 |
| Fair Value Estimate |
$1,117.50 |
$286.05 |
| Upside to Fair Value |
+24.7%
|
+5.7%
|
| Market Cap |
$397.6B |
$652.3B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
32.7x
|
20.2x
|
| Price / Sales |
1.3x
|
6.7x
|
| Price / FCF |
42.4x
|
35.3x
|
| Revenue Growth YoY |
+11.1%
|
+6.6%
|
| Gross Margin |
17.5%
|
67.9%
|
| Operating Margin |
3.9%
|
26.8%
|
| Return on Equity |
28.0%
|
25.7%
|
| Dividend Yield |
0.62% |
1.95% |
| FCF Yield |
2.36%
|
2.83%
|
| Analyst Consensus |
Strong Buy
|
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…
Johnson & Johnson is a 141,700-employee healthcare holding company operating two segments, Innovative Medicine (immunology, oncology, neuroscience, infectious disease, cardiovascular and metabolism, pulmonary hypertension) and MedTech (interventional solutions, orthopaedics, surgery, vision), founded in 1887 and headquartered in New Brunswick, New Jersey. Business quality is high on fundamentals:…
Accumulation Zones
| Metric |
COST |
JNJ |
| Zone Low |
$838.12 |
$214.54 |
| Zone High |
$949.88 |
$243.14 |
| In Buy Zone? |
Yes
|
No
|