Costco Wholesale vs Coca-Cola Co.

COST and KO, both consumer, compared on the same figures computed the same way.

On our discounted cash flow model, Coca-Cola Co. looks the cheaper of the two, trading 13 percentage points further below its estimated fair value than Costco Wholesale. That is a statement about price against one model, not a forecast, and most of a DCF's output sits in a terminal value nobody can actually forecast.

Coca-Cola Co. scores higher on our moat model (81 against 80). A moat is a structural reason competitors cannot take the profits away, and over a long holding period it matters more than any single quarter's numbers.

COST trades at 50.0 times earnings against KO's 24.5. A lower multiple is not automatically the better deal: on a cyclical business the low P/E arrives at the top of the cycle, right before earnings fall.

The honest answer to "which is better" is that it depends on what you are buying them for, and neither this page nor any screen can make that judgement for you. What it can do is show you the same figures for both, computed the same way, so the comparison is fair.

MetricCOSTKO
Share price$900.00$63.20
Market cap$400.00B$270.00B
P/E ratio50.024.5
DCF fair value$850.00$68.00
Upside to fair value-5.6%+7.6%
Moat score80/10081/100
Dividend yield0.50%3.10%
Return on equity30.0%40.0%
Overall rating70/100, Strong Buy67/100, Buy

Gold marks the more favourable figure on rows where “better” has an agreed direction. It is a signpost, not a verdict. A lower P/E can be a value trap; a higher yield can be a dividend about to be cut.

Full COST research
Valuation, ownership and the screens it passes.
Full KO research
Valuation, ownership and the screens it passes.

Common questions

Is COST or KO a better buy?

Neither page nor screen can answer that for your situation, but on the numbers: our overall rating puts Costco Wholesale ahead (70 to 67), and on discounted cash flow Coca-Cola Co. looks cheaper against its own fair value. Both readings are one model's opinion, not advice.

COST vs KO: which has the wider moat?

Our moat model scores COST at 80 and KO at 81 out of 100. The higher score means a more durable structural advantage, which matters most over a long holding period.

Compare any two companies yourself, with financial statements and peer data, free inside the app.

Metrics from company filings and our own valuation model, both of which can be wrong. Quotes are delayed. Educational information, not financial advice.