COST vs RTX: Which Is the Better Buy?
Side-by-side comparison of Costco Wholesale Corporation and RTX Corporation — 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
RTX Corporation · Industrials
$172.90
-21.3% upside to fair value
Grade D
QuantHub Verdict
COST has more upside to fair value
(-19.1%).
RTX trades at a lower forward P/E
(32.1x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
COST |
RTX |
| Current Price |
$999.89 |
$172.90 |
| Fair Value Estimate |
$808.71 |
$136.05 |
| Upside to Fair Value |
-19.1%
|
-21.3%
|
| Market Cap |
$443.6B |
$232.8B |
| Forward P/E |
51.9x
|
32.1x
|
| EV / EBITDA |
30.9x
|
19.2x
|
| Price / Sales |
1.6x
|
2.6x
|
| Price / FCF |
48.8x
|
27.9x
|
| Revenue Growth YoY |
+9.2%
|
+8.7%
|
| Gross Margin |
12.9%
|
20.2%
|
| Operating Margin |
3.8%
|
10.4%
|
| Return on Equity |
28.8%
|
11.2%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
2.05%
|
3.59%
|
| Analyst Consensus |
Buy
|
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…
RTX Corporation is a leading aerospace and defense company with a diversified portfolio spanning Pratt & Whitney jet engines, Collins Aerospace avionics, and Raytheon Intelligence & Space defense systems. The company benefits from a strong competitive moat supported by a $271 billion backlog and multi-year contracts, driving consistent revenue growth of 10% in 2025 and 9% in Q1 2026. Earnings gro…
Accumulation Zones
| Metric |
COST |
RTX |
| Zone Low |
$606.53 |
$102.04 |
| Zone High |
$687.40 |
$115.64 |
| In Buy Zone? |
No
|
No
|