COST vs MA: Which Is the Better Buy?
Side-by-side comparison of Costco Wholesale Corporation and Mastercard Incorporated — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-04-11.
Costco Wholesale Corporation · Consumer Defensive
$1,002.88
-35.4% upside to fair value
Grade C
High Quality
VS
Mastercard Incorporated · Financial Services
$498.66
+22.3% upside to fair value
High Conviction
Grade A-
QuantHub Verdict
MA has more upside to fair value
(+22.3%).
MA trades at a lower forward P/E
(25.5x).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
COST |
MA |
| Current Price |
$1,002.88 |
$498.66 |
| Fair Value Estimate |
$648.03 |
$610.00 |
| Upside to Fair Value |
-35.4%
|
+22.3%
|
| Market Cap |
$444.9B |
$445.0B |
| Forward P/E |
52.1x
|
25.5x
|
| EV / EBITDA |
31.0x
|
22.4x
|
| Price / Sales |
1.6x
|
13.6x
|
| Price / FCF |
49.0x
|
26.0x
|
| Revenue Growth YoY |
+3.4%
|
+16.4%
|
| Gross Margin |
12.9%
|
83.4%
|
| Operating Margin |
3.8%
|
59.2%
|
| Return on Equity |
28.8%
|
198.4%
|
| Dividend Yield |
0% |
0.65% |
| FCF Yield |
2.04%
|
3.84%
|
| Analyst Consensus |
Strong Buy
|
Strong Buy
|
Investment Thesis
Costco Wholesale Corporation operates a global membership-based warehouse club model with over 900 warehouses across 14 countries, generating $254 billion in fiscal 2024 revenue. The company benefits from a durable competitive moat driven by scale advantages, a loyal membership base with high renewal rates, and superior employee retention through better wages and benefits. Despite steady revenue …
Mastercard operates one of the world's two dominant payment networks, processing over $9 trillion in gross dollar volume annually across 220+ countries. The business generates 83% gross margins and 46% net margins with zero credit risk because Mastercard never lends money, only collecting tolls on every transaction. Value-Added Services (analytics, fraud prevention, cybersecurity) now comprise 41…
Accumulation Zones
| Metric |
COST |
MA |
| Zone Low |
$486.02 |
$460.00 |
| Zone High |
$550.83 |
$515.00 |
| In Buy Zone? |
No
|
Yes
|