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 2026-04-20.
Costco Wholesale Corporation · Consumer Defensive
$999.89
-20.7% upside to fair value
Grade D
High Quality
VS
Johnson & Johnson · Healthcare
$230.69
+10.8% upside to fair value
Grade C
High Quality
QuantHub Verdict
JNJ has more upside to fair value
(+10.8%).
JNJ trades at a lower forward P/E
(26.8x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
COST |
JNJ |
| Current Price |
$999.89 |
$230.69 |
| Fair Value Estimate |
$793.02 |
$255.61 |
| Upside to Fair Value |
-20.7%
|
+10.8%
|
| Market Cap |
$443.6B |
$555.9B |
| Forward P/E |
51.9x
|
26.8x
|
| EV / EBITDA |
30.9x
|
18.5x
|
| Price / Sales |
1.6x
|
5.8x
|
| Price / FCF |
48.8x
|
28.2x
|
| Revenue Growth YoY |
+9.2%
|
+9.9%
|
| Gross Margin |
12.9%
|
69.1%
|
| Operating Margin |
3.8%
|
26.9%
|
| Return on Equity |
28.8%
|
26.5%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
2.05%
|
3.54%
|
| 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…
Johnson & Johnson is a leading healthcare company focused on pharmaceuticals and medical devices following its consumer health spin-off. The business quality is high due to its durable competitive moat, diversified portfolio, and strong management with deep institutional knowledge. Despite a 52.4% decline in earnings in the most recent quarter, revenue grew 9.9% year-over-year in the same period,…
Accumulation Zones
| Metric |
COST |
JNJ |
| Zone Low |
$594.76 |
$191.71 |
| Zone High |
$674.07 |
$217.27 |
| In Buy Zone? |
No
|
No
|