COST vs PANW: Which Is the Better Buy?
Side-by-side comparison of Costco Wholesale Corporation and Palo Alto Networks, Inc. — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-09-26.
Costco Wholesale Corporation · Consumer Defensive
$896.48
+24.7% upside to fair value
Med Conviction
Grade B
High Quality
VS
Palo Alto Networks, Inc. · Technology
$374.74
-5.2% upside to fair value
Med Conviction
Grade C
High Quality
QuantHub Verdict
COST has more upside to fair value
(+24.7%).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
COST |
PANW |
| Current Price |
$896.48 |
$374.74 |
| Fair Value Estimate |
$1,117.50 |
$355.11 |
| Upside to Fair Value |
+24.7%
|
-5.2%
|
| Market Cap |
$397.6B |
$305.4B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
32.7x
|
569.8x
|
| Price / Sales |
1.3x
|
26.6x
|
| Price / FCF |
42.4x
|
64.0x
|
| Revenue Growth YoY |
+11.1%
|
+34.4%
|
| Gross Margin |
17.5%
|
70.4%
|
| Operating Margin |
3.9%
|
6.1%
|
| Return on Equity |
28.0%
|
1.7%
|
| Dividend Yield |
0.62% |
0% |
| FCF Yield |
2.36%
|
1.56%
|
| Analyst Consensus |
Strong Buy
|
Strong Buy
|
Investment Thesis
Costco Wholesale Corporation operates a global network of membership-based warehouse clubs, selling branded and private-label merchandise across the United States, Canada, Mexico, Japan, the United Kingdom, South Korea, Taiwan, Australia, Spain, France, Iceland, and China, supplemented by pharmacies, optical centers, food courts, hearing aid centers, tire installation, 636 gas stations, and e-com…
Palo Alto Networks is a global cybersecurity leader built around next-generation firewalls, the Panorama management platform, and a broad subscription portfolio spanning threat prevention, cloud security, secure access, and security analytics, sold to medium and large enterprises, service providers, and governments through direct and channel distribution. The business quality is genuinely high on…
Accumulation Zones
| Metric |
COST |
PANW |
| Zone Low |
$838.12 |
$266.33 |
| Zone High |
$949.88 |
$301.84 |
| In Buy Zone? |
Yes
|
No
|