COST vs NFLX: Which Is the Better Buy?
Side-by-side comparison of Costco Wholesale Corporation and Netflix, Inc. — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-05-04.
Costco Wholesale Corporation · Consumer Defensive
$999.89
-19.1% upside to fair value
Grade D
High Quality
VS
Netflix, Inc. · Communication Services
$91.02
+95.7% upside to fair value
Grade B
High Quality
QuantHub Verdict
NFLX has more upside to fair value
(+95.7%).
NFLX trades at a lower forward P/E
(28.7x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
COST |
NFLX |
| Current Price |
$999.89 |
$91.02 |
| Fair Value Estimate |
$808.71 |
$178.10 |
| Upside to Fair Value |
-19.1%
|
+95.7%
|
| Market Cap |
$443.6B |
$383.3B |
| Forward P/E |
51.9x
|
28.7x
|
| EV / EBITDA |
30.9x
|
11.4x
|
| Price / Sales |
1.6x
|
8.2x
|
| Price / FCF |
48.8x
|
32.2x
|
| Revenue Growth YoY |
+9.2%
|
+16.2%
|
| Gross Margin |
12.9%
|
49.0%
|
| Operating Margin |
3.8%
|
29.7%
|
| Return on Equity |
28.8%
|
49.2%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
2.05%
|
3.1%
|
| 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…
Netflix, Inc. operates a leading global streaming entertainment service with a dominant streaming segment accounting for nearly 100% of its revenue. The company benefits from a high-quality business model characterized by strong revenue growth of 16.2% and earnings growth of 82.8% in the most recent quarter, a robust 49.2% return on equity, and healthy margins with a 29.7% operating margin and 28…
Accumulation Zones
| Metric |
COST |
NFLX |
| Zone Low |
$606.53 |
$133.57 |
| Zone High |
$687.40 |
$151.38 |
| In Buy Zone? |
No
|
Yes
|