COST vs SBUX: Which Is the Better Buy?
Side-by-side comparison of Costco Wholesale Corporation and Starbucks Corporation — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-09-25.
Costco Wholesale Corporation · Consumer Defensive
$896.48
+24.7% upside to fair value
Med Conviction
Grade B
High Quality
VS
Starbucks Corporation · Consumer Cyclical
$96.67
+12.3% upside to fair value
Med Conviction
Grade C
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 |
SBUX |
| Current Price |
$896.48 |
$96.67 |
| Fair Value Estimate |
$1,117.50 |
$108.52 |
| Upside to Fair Value |
+24.7%
|
+12.3%
|
| Market Cap |
$397.6B |
$110.2B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
32.7x
|
22.0x
|
| Price / Sales |
1.3x
|
2.9x
|
| Price / FCF |
42.4x
|
30.4x
|
| Revenue Growth YoY |
+11.1%
|
-1.4%
|
| Gross Margin |
17.5%
|
31.7%
|
| Operating Margin |
3.9%
|
9.4%
|
| Return on Equity |
28.0%
|
-24.3%
|
| Dividend Yield |
0.62% |
2.57% |
| FCF Yield |
2.36%
|
3.29%
|
| Analyst Consensus |
Strong Buy
|
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…
Starbucks is the world's largest specialty coffee retailer, operating company-owned and licensed coffeehouses across North America, International, and Channel Development segments, with a brand that has historically supported premium pricing and global scale. The business quality is currently strained: revenue declined 1.4% year over year in the most recent quarter, TTM operating margin is 9.4%, …
Accumulation Zones
| Metric |
COST |
SBUX |
| Zone Low |
$838.12 |
$81.39 |
| Zone High |
$949.88 |
$92.24 |
| In Buy Zone? |
Yes
|
No
|