COST vs XOM: Which Is the Better Buy?

Side-by-side comparison of Costco Wholesale Corporation and Exxon Mobil 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
Exxon Mobil Corporation · Energy
$137.81
-45.0% upside to fair value
Grade C
QuantHub Verdict
COST has more upside to fair value (-1.4%). XOM trades at a lower forward P/E (22.8x). These are model outputs — not personalized investment advice. See all research →
Valuation & Fundamentals
Metric COST XOM
Current Price $947.50 $137.81
Fair Value Estimate $933.84 $75.80
Upside to Fair Value -1.4% -45.0%
Market Cap $420.2B $571.2B
Forward P/E 47.6x 22.8x
EV / EBITDA 28.3x 10.1x
Price / Sales 1.4x 1.8x
Price / FCF 47.7x 30.4x
Revenue Growth YoY +11.6% +2.6%
Gross Margin 12.9% 25.5%
Operating Margin 3.8% 9.0%
Return on Equity 28.3% 9.8%
Dividend Yield 0% 0%
FCF Yield 2.1% 3.29%
Analyst Consensus Buy Buy
Investment Thesis
COST — Costco Wholesale Corporation
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…
XOM — Exxon Mobil Corporation
Exxon Mobil Corporation is a leading integrated oil and gas company with a durable competitive moat based on its scale, integration, advantaged long-life resources, proprietary technology, and irreplaceable infrastructure. The company is led by a long-tenured management team with a strong capital allocation track record focused on dividends and buybacks. Despite these strengths, Exxon is currentl…
Accumulation Zones
Metric COST XOM
Zone Low $700.38 $56.85
Zone High $793.76 $64.43
In Buy Zone? No No
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