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 2026-06-20.
Costco Wholesale Corporation · Consumer Defensive
$951.45
-1.2% 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
(-1.2%).
RTX trades at a lower forward P/E
(34.3x).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
COST |
RTX |
| Current Price |
$951.45 |
$185.60 |
| Fair Value Estimate |
$940.44 |
$138.81 |
| Upside to Fair Value |
-1.2%
|
-25.2%
|
| Market Cap |
$421.9B |
$249.9B |
| Forward P/E |
47.8x
|
34.3x
|
| EV / EBITDA |
28.4x
|
18.3x
|
| Price / Sales |
1.4x
|
2.8x
|
| Price / FCF |
47.9x
|
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 |
2.09%
|
3.34%
|
| Analyst Consensus |
Buy
|
Buy
|
Investment Thesis
Costco Wholesale Corporation operates a membership-based warehouse club model primarily focused on merchandise sales, which constitute about 98% of its revenue, with membership fees contributing roughly 2%. The company benefits from a durable competitive moat driven by deep operational expertise, a long-tenured leadership culture, and a stable CEO succession. Despite strong revenue growth of 11.6…
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 |
$705.33 |
$104.11 |
| Zone High |
$799.37 |
$117.99 |
| In Buy Zone? |
No
|
No
|