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 2026-07-15.
Costco Wholesale Corporation · Consumer Defensive
$947.50
-1.4% upside to fair value
Grade C
High Quality
VS
Johnson & Johnson · Healthcare
$253.85
-21.7% upside to fair value
Grade D
High Quality
QuantHub Verdict
COST has more upside to fair value
(-1.4%).
JNJ trades at a lower forward P/E
(29.3x).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
COST |
JNJ |
| Current Price |
$947.50 |
$253.85 |
| Fair Value Estimate |
$933.84 |
$198.76 |
| Upside to Fair Value |
-1.4%
|
-21.7%
|
| Market Cap |
$420.2B |
$611.1B |
| Forward P/E |
47.6x
|
29.3x
|
| EV / EBITDA |
28.3x
|
19.2x
|
| Price / Sales |
1.4x
|
6.3x
|
| Price / FCF |
47.7x
|
34.3x
|
| Revenue Growth YoY |
+11.6%
|
+9.9%
|
| Gross Margin |
12.9%
|
69.1%
|
| Operating Margin |
3.8%
|
26.9%
|
| Return on Equity |
28.3%
|
26.3%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
2.1%
|
2.91%
|
| Analyst Consensus |
Buy
|
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…
Johnson & Johnson is a leading healthcare conglomerate operating primarily in the drug manufacturing sector, known for its durable competitive moat supported by strong brand recognition and intangible assets. The company exhibits high business quality with a 26.3% return on equity and robust gross and net margins of 69.1% and 21.8%, respectively. However, earnings have faced significant pressure,…
Accumulation Zones
| Metric |
COST |
JNJ |
| Zone Low |
$700.38 |
$149.07 |
| Zone High |
$793.76 |
$168.95 |
| In Buy Zone? |
No
|
No
|