COST vs MS: Which Is the Better Buy?
Side-by-side comparison of Costco Wholesale Corporation and Morgan Stanley — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-07-17.
Costco Wholesale Corporation · Consumer Defensive
$947.50
-1.4% upside to fair value
Grade C
High Quality
VS
Morgan Stanley · Financial Services
$218.37
+45.0% upside to fair value
Grade B
High Quality
QuantHub Verdict
MS has more upside to fair value
(+45.0%).
MS trades at a lower forward P/E
(23.6x).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
COST |
MS |
| Current Price |
$947.50 |
$218.37 |
| Fair Value Estimate |
$933.84 |
$316.64 |
| Upside to Fair Value |
-1.4%
|
+45.0%
|
| Market Cap |
$420.2B |
$344.4B |
| Forward P/E |
47.6x
|
23.6x
|
| EV / EBITDA |
28.3x
|
9.8x
|
| Price / Sales |
1.4x
|
2.7x
|
| Price / FCF |
47.7x
|
-327.4x
|
| Revenue Growth YoY |
+11.6%
|
+22.4%
|
| Gross Margin |
12.9%
|
56.6%
|
| Operating Margin |
3.8%
|
28.4%
|
| Return on Equity |
28.3%
|
23.4%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
2.1%
|
—
|
| Analyst Consensus |
Buy
|
Hold
|
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…
Morgan Stanley is a leading global financial services firm specializing in capital markets, wealth management, and investment banking. The company demonstrates high business quality with a strong return on equity of 23.4% and robust revenue growth of 22.4% in the most recent quarter, alongside impressive earnings growth of 57.7% in the same period. Its gross margin of 56.6% and net margin of 20.2…
Accumulation Zones
| Metric |
COST |
MS |
| Zone Low |
$700.38 |
$237.48 |
| Zone High |
$793.76 |
$269.14 |
| In Buy Zone? |
No
|
Yes
|