COST vs MSFT: Which Is the Better Buy?
Side-by-side comparison of Costco Wholesale Corporation and Microsoft Corporation — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-04-29.
Costco Wholesale Corporation · Consumer Defensive
$999.89
-20.7% upside to fair value
Grade D
High Quality
VS
Microsoft Corporation · Technology
$429.25
-1.3% upside to fair value
Grade B
High Quality
QuantHub Verdict
MSFT has more upside to fair value
(-1.3%).
MSFT trades at a lower forward P/E
(26.8x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
COST |
MSFT |
| Current Price |
$999.89 |
$429.25 |
| Fair Value Estimate |
$793.02 |
$423.82 |
| Upside to Fair Value |
-20.7%
|
-1.3%
|
| Market Cap |
$443.6B |
$3,187.4B |
| Forward P/E |
51.9x
|
26.8x
|
| EV / EBITDA |
30.9x
|
17.2x
|
| Price / Sales |
1.6x
|
10.4x
|
| Price / FCF |
48.8x
|
41.2x
|
| Revenue Growth YoY |
+9.2%
|
+16.7%
|
| Gross Margin |
12.9%
|
68.6%
|
| Operating Margin |
3.8%
|
46.7%
|
| Return on Equity |
28.8%
|
33.6%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
2.05%
|
2.43%
|
| Analyst Consensus |
Buy
|
Strong 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…
Microsoft Corporation is a leading technology company specializing in software infrastructure, cloud computing, and productivity solutions. The company benefits from a high-quality business model characterized by durable competitive moats including strong switching costs and intangible assets such as its brand and cloud infrastructure. Under CEO Satya Nadella's leadership since 2014, Microsoft ha…
Accumulation Zones
| Metric |
COST |
MSFT |
| Zone Low |
$594.76 |
$317.87 |
| Zone High |
$674.07 |
$360.25 |
| In Buy Zone? |
No
|
No
|