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 2026-09-25.
Costco Wholesale Corporation · Consumer Defensive
$896.48
+24.7% upside to fair value
Med Conviction
Grade B
High Quality
VS
UnitedHealth Group Incorporated · Healthcare
$375.21
+28.2% upside to fair value
Med Conviction
Grade B
High Quality
QuantHub Verdict
UNH has more upside to fair value
(+28.2%).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
COST |
UNH |
| Current Price |
$896.48 |
$375.21 |
| Fair Value Estimate |
$1,117.50 |
$481.06 |
| Upside to Fair Value |
+24.7%
|
+28.2%
|
| Market Cap |
$397.6B |
$340.7B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
32.7x
|
15.0x
|
| Price / Sales |
1.3x
|
0.8x
|
| Price / FCF |
42.4x
|
14.4x
|
| Revenue Growth YoY |
+11.1%
|
+0.4%
|
| Gross Margin |
17.5%
|
22.5%
|
| Operating Margin |
3.9%
|
4.8%
|
| Return on Equity |
28.0%
|
14.6%
|
| Dividend Yield |
0.62% |
2.41% |
| FCF Yield |
2.36%
|
6.95%
|
| Analyst Consensus |
Strong Buy
|
Strong 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…
UnitedHealth Group is the largest diversified healthcare enterprise in the United States, operating UnitedHealthcare insurance plans alongside Optum Health, Optum Insight, and Optum Rx, with 390,000 employees and a market capitalization of $340.74 billion. The business quality is high: a 14.6% return on equity, $26.07 in free cash flow per share, and a P/FCF of 14.39 demonstrate strong cash gener…
Accumulation Zones
| Metric |
COST |
UNH |
| Zone Low |
$838.12 |
$360.80 |
| Zone High |
$949.88 |
$408.90 |
| In Buy Zone? |
Yes
|
Yes
|