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 2026-07-08.
Costco Wholesale Corporation · Consumer Defensive
$947.50
-1.4% upside to fair value
Grade C
High Quality
VS
RTX Corporation · Industrials
$185.60
-25.2% upside to fair value
Grade D
QuantHub Verdict
COST has more upside to fair value
(-1.4%).
RTX trades at a lower forward P/E
(34.3x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
COST |
RTX |
| Current Price |
$947.50 |
$185.60 |
| Fair Value Estimate |
$933.84 |
$138.81 |
| Upside to Fair Value |
-1.4%
|
-25.2%
|
| Market Cap |
$420.2B |
$249.9B |
| Forward P/E |
47.6x
|
34.3x
|
| EV / EBITDA |
28.3x
|
18.3x
|
| Price / Sales |
1.4x
|
2.8x
|
| Price / FCF |
47.7x
|
29.9x
|
| Revenue Growth YoY |
+11.6%
|
+8.7%
|
| Gross Margin |
12.9%
|
20.2%
|
| Operating Margin |
3.8%
|
10.9%
|
| Return on Equity |
28.3%
|
11.2%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
2.1%
|
3.34%
|
| Analyst Consensus |
Buy
|
Buy
|
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…
RTX Corporation is a leading aerospace and defense company with a strong competitive moat driven by scale and an installed base in commercial aerospace via Pratt & Whitney and Collins Aerospace, and defense through Raytheon. The company benefits from a large multi-year backlog of approximately $270 billion supporting steady cash flow and mid-single-digit organic growth. Despite solid revenue grow…
Accumulation Zones
| Metric |
COST |
RTX |
| Zone Low |
$700.38 |
$104.11 |
| Zone High |
$793.76 |
$117.99 |
| In Buy Zone? |
No
|
No
|