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 2026-07-08.
Costco Wholesale Corporation · Consumer Defensive
$947.50
-1.4% upside to fair value
Grade C
High Quality
VS
Starbucks Corporation · Consumer Cyclical
$100.65
-6.1% upside to fair value
Grade D
QuantHub Verdict
COST has more upside to fair value
(-1.4%).
COST trades at a lower forward P/E
(47.6x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
COST |
SBUX |
| Current Price |
$947.50 |
$100.65 |
| Fair Value Estimate |
$933.84 |
$94.50 |
| Upside to Fair Value |
-1.4%
|
-6.1%
|
| Market Cap |
$420.2B |
$114.7B |
| Forward P/E |
47.6x
|
76.7x
|
| EV / EBITDA |
28.3x
|
25.6x
|
| Price / Sales |
1.4x
|
3.0x
|
| Price / FCF |
47.7x
|
42.1x
|
| Revenue Growth YoY |
+11.6%
|
+8.8%
|
| Gross Margin |
12.9%
|
20.4%
|
| Operating Margin |
3.8%
|
9.3%
|
| Return on Equity |
28.3%
|
-18.3%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
2.1%
|
2.38%
|
| Analyst Consensus |
Buy
|
Hold
|
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…
Starbucks Corporation operates a global coffeehouse chain with a strong brand and a leading digital/mobile platform, serving approximately 90 million customers weekly through over 28,000 stores in 77 countries. The company benefits from a durable competitive moat based on its extensive store footprint, brand recognition, and digital engagement rather than proprietary products. Despite solid reven…
Accumulation Zones
| Metric |
COST |
SBUX |
| Zone Low |
$700.38 |
$70.88 |
| Zone High |
$793.76 |
$80.33 |
| In Buy Zone? |
No
|
No
|