COST vs WMT: Which Is the Better Buy?
Side-by-side comparison of Costco Wholesale Corporation and Walmart Inc. — 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
Walmart Inc. · Consumer Defensive
$106.73
-10.8% upside to fair value
Med Conviction
Grade C
High Quality
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 |
WMT |
| Current Price |
$896.48 |
$106.73 |
| Fair Value Estimate |
$1,117.50 |
$95.24 |
| Upside to Fair Value |
+24.7%
|
-10.8%
|
| Market Cap |
$397.6B |
$849.4B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
32.7x
|
21.3x
|
| Price / Sales |
1.3x
|
1.1x
|
| Price / FCF |
42.4x
|
62.8x
|
| Revenue Growth YoY |
+11.1%
|
+5.9%
|
| Gross Margin |
17.5%
|
25.2%
|
| Operating Margin |
3.9%
|
4.4%
|
| Return on Equity |
28.0%
|
22.7%
|
| Dividend Yield |
0.62% |
0.92% |
| FCF Yield |
2.36%
|
1.59%
|
| 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…
Walmart Inc. is the world's largest retailer by revenue, operating more than 10,000 stores and clubs across Walmart U.S., Walmart International, and Sam's Club, with a fast-growing e-commerce and advertising ecosystem layered on top of a grocery-led, everyday-low-price model. The business quality is high: scale and sourcing power underpin a durable cost advantage, ROE is 22.7%, and revenue grew 5…
Accumulation Zones
| Metric |
COST |
WMT |
| Zone Low |
$838.12 |
$71.43 |
| Zone High |
$949.88 |
$80.95 |
| In Buy Zone? |
Yes
|
No
|