Costco Wholesale Corporation (COST) vs The Home Depot, Inc. (HD)
A side-by-side comparison of Costco Wholesale Corporation and The Home Depot, Inc. across valuation, profitability, dividends, and growth — built entirely from reported fundamentals, as of September 11, 2026. Differences are shown without an overall score or investment verdict.
Different business models: COST is classified in Consumer Defensive; HD is classified in Consumer Cyclical. Margin, capital intensity, and valuation differences should be interpreted in that sector context.
COST
Costco Wholesale Corporation
$904.77Consumer DefensiveDelayed quote: Sep 11, 2026, 4:00 PM EDT
HD
The Home Depot, Inc.
$308.74Consumer CyclicalDelayed quote: Sep 11, 2026, 4:00 PM EDT
Total return — COST vs HD
growth of $100 · dividends reinvested · last 10yCOST +544.2% (+20.5%/yr)HD +197.3% (+11.5%/yr)COST compounded faster over this window
COST HD
COST vs HD: by the numbers
- •COST is the larger company ($401.25B vs $307.85B market cap).
- •HD trades at the lower trailing earnings multiple (21.61 vs 45.51 P/E), one valuation lens rather than an overall verdict.
- •HD converts more revenue to profit (8.41% vs 3.01% net margin).
- •COST grew revenue faster over the past five years (9.48% vs 3.21% CAGR).
- •HD pays the higher dividend yield (3.03% vs 0.61%).
Metrics side by side
Valuation
| Metric | COST | HD |
|---|---|---|
| P/E ratio | 45.51 | 21.61 |
| Forward P/E | 39.92 | 20.57 |
| P/S ratio | 1.37 | 1.82 |
| P/B ratio | 11.97 | 18.53 |
| EV / EBITDA | 28.32 | 14.80 |
| FCF yield | 2.19% | 4.90% |
Profitability
| Metric | COST | HD |
|---|---|---|
| Gross margin | 12.88% | 33.21% |
| Operating margin | 3.82% | 12.43% |
| Net margin | 3.01% | 8.41% |
| ROE | 26.38% | 85.62% |
| ROIC | 19.01% | 18.80% |
Dividends
| Metric | COST | HD |
|---|---|---|
| Dividend yield | 0.61% | 3.03% |
| Payout ratio | 27.87% | 64.80% |
Growth (annualized)
| Metric | COST | HD |
|---|---|---|
| Revenue CAGR (5Y) | 9.48% | 3.21% |
| EPS CAGR (5Y) | 15.04% | -2.18% |
| FCF CAGR (5Y) | 4.95% | -2.52% |
| Total return CAGR (5Y) | 14.89% | 0.90% |
Frequently asked
- Which has the lower trailing P/E, COST or HD?
- HD has the lower trailing P/E: COST trades at 45.51 and HD at 21.61. P/E is one valuation measure and does not by itself establish which business is cheaper.
- Which has grown faster, COST or HD?
- Over the past five years, COST grew revenue faster — COST at a 9.48% CAGR versus HD at 3.21%.
- Does COST or HD pay a bigger dividend?
- COST yields 0.61% and HD yields 3.03% based on trailing dividends and the latest price.
- Is COST or HD more profitable?
- HD runs the higher net margin — COST at 3.01% versus HD at 8.41%.
- How have COST and HD total returns compared?
- Over the past 10 years, COST delivered 20.56% and HD delivered 11.81% annualized total return. Past performance doesn't predict future results.
Go deeper
Dig into the metrics
Costco Wholesale P/E ratioHome Depot P/E ratioCostco Wholesale dividend yieldHome Depot dividend yieldCostco Wholesale ROEHome Depot ROECostco Wholesale operating marginHome Depot operating marginCostco Wholesale revenue growthHome Depot revenue growthCostco Wholesale free cash flowHome Depot free cash flow
Costco Wholesale & Home Depot appear in these rankings
Figures are sourced from reported fundamentals and the latest end-of-day price. This comparison is informational only and is not investment advice. Past performance does not predict future results. See our methodology. Compiled by TGMCharts Research · data verified September 11, 2026.