COST vs UNH: Which Is the Better Buy?
Side-by-side comparison of Costco Wholesale Corporation and UnitedHealth Group Incorporated — 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
UnitedHealth Group Incorporated · Healthcare
$304.33
+41.3% upside to fair value
Med Conviction
Grade B+
QuantHub Verdict
UNH has more upside to fair value
(+41.3%).
UNH trades at a lower forward P/E
(15.1x).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
COST |
UNH |
| Current Price |
$1,002.88 |
$304.33 |
| Fair Value Estimate |
$648.03 |
$430.00 |
| Upside to Fair Value |
-35.4%
|
+41.3%
|
| Market Cap |
$444.9B |
$276.2B |
| Forward P/E |
52.1x
|
15.1x
|
| EV / EBITDA |
31.0x
|
14.3x
|
| Price / Sales |
1.6x
|
0.6x
|
| Price / FCF |
49.0x
|
17.2x
|
| Revenue Growth YoY |
+3.4%
|
+11.8%
|
| Gross Margin |
12.9%
|
18.5%
|
| Operating Margin |
3.8%
|
4.2%
|
| Return on Equity |
28.8%
|
12.7%
|
| Dividend Yield |
0% |
2.9% |
| FCF Yield |
2.04%
|
5.82%
|
| Analyst Consensus |
Strong Buy
|
Buy
|
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 …
UnitedHealth Group is the world's largest diversified healthcare company, combining the dominant US health insurer UnitedHealthcare with the high-margin Optum services platform spanning care delivery, pharmacy benefits, and data analytics. The stock has fallen roughly 49% from its 2024 peak of $596, driven by elevated medical costs, DOJ antitrust scrutiny, CEO transitions (Brian Thompson's murder…
Accumulation Zones
| Metric |
COST |
UNH |
| Zone Low |
$486.02 |
$280.00 |
| Zone High |
$550.83 |
$340.00 |
| In Buy Zone? |
No
|
Yes
|