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 2026-04-11.
Costco Wholesale Corporation · Consumer Defensive
$1,002.88
-35.4% upside to fair value
Grade C
High Quality
VS
Starbucks Corporation · Consumer Cyclical
$96.60
+19.0% upside to fair value
Med Conviction
Grade B+
QuantHub Verdict
SBUX has more upside to fair value
(+19.0%).
SBUX trades at a lower forward P/E
(42.2x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
COST |
SBUX |
| Current Price |
$1,002.88 |
$96.60 |
| Fair Value Estimate |
$648.03 |
$115.00 |
| Upside to Fair Value |
-35.4%
|
+19.0%
|
| Market Cap |
$444.9B |
$110.1B |
| Forward P/E |
52.1x
|
42.2x
|
| EV / EBITDA |
31.0x
|
22.5x
|
| Price / Sales |
1.6x
|
3.0x
|
| Price / FCF |
49.0x
|
45.1x
|
| Revenue Growth YoY |
+3.4%
|
+2.8%
|
| Gross Margin |
12.9%
|
24.2%
|
| Operating Margin |
3.8%
|
9.6%
|
| Return on Equity |
28.8%
|
-22.9%
|
| Dividend Yield |
0% |
2.55% |
| FCF Yield |
2.04%
|
2.2%
|
| Analyst Consensus |
Strong Buy
|
Hold
|
Investment Thesis
Costco Wholesale Corporation operates a global membership-based warehouse club model with over 900 warehouses across 14 countries, generating $254 billion in fiscal 2024 revenue. The company benefits from a durable competitive moat driven by scale advantages, a loyal membership base with high renewal rates, and superior employee retention through better wages and benefits. Despite steady revenue …
Starbucks is the world's largest specialty coffee retailer with over 39,000 stores across 86 markets, generating $37.2B in annual revenue. Under CEO Brian Niccol, now 19 months into his tenure after joining from Chipotle in September 2024, the company is executing the Back to Starbucks operational turnaround focused on service speed, menu simplification, and store experience reinvention. At P/S 2…
Accumulation Zones
| Metric |
COST |
SBUX |
| Zone Low |
$486.02 |
$88.00 |
| Zone High |
$550.83 |
$98.00 |
| In Buy Zone? |
No
|
Yes
|