Costco vs Home Depot (COST vs HD)
Costco (COST) vs Home Depot (HD) in plain English: P/E, growth, margins, debt and dividend side by side, key differences and which fits each investor profile.
Costco (COST) and Home Depot (HD) compete in retail. Here are Costco and Home Depot side by side with their real figures as of November 4, 2026: what sets them apart, which fits each kind of investor and the most common questions, without telling you whether to buy Costco or Home Depot.
Costco vs Home Depot: the figures
| Figure | Costco | Home Depot |
|---|---|---|
| Share price | $1,046.47 (November 4, 2026) | $355.44 (November 4, 2026) |
| Market cap | $463.7 billion | $354.6 billion |
| P/E (TTM) | 50.4x | 25.4x |
| Forward P/E | 41.8x | 22.3x |
| Revenue growth (quarter) | +11.1% | +5.7% |
| Net margin (TTM) | 3.0% | 8.4% |
| Net debt / EBITDA | Net cash | 2.5x |
| Dividend yield | 0.58% | 2.79% |
| Beta | 0.85 | 0.95 |
Costco and Home Depot figures from Yahoo Finance, the same source the Fintols analysis uses, retrieved on November 4, 2026; N/A means that Costco or Home Depot figure is not available, and we never estimate it.
3 key differences between Costco and Home Depot
- Valuation: Costco trades at 50.4x its annual earnings and Home Depot at 25.4x; the market pays more for each dollar of Costco profit, usually because it expects more growth.
- Debt: Home Depot owes 2.5x its annual operating profit (EBITDA), while Costco holds more cash than debt.
- Dividend: Home Depot yields 2.79% at today's price and Costco yields 0.58%.
Costco or Home Depot: which fits your profile
- If you want growth: Costco is growing faster today, so it fits better with investors who put business growth first, usually accepting a higher P/E and a bumpier ride.
- If you want income (dividends): Home Depot pays the higher dividend relative to its price.
- If you prefer caution: Costco has less debt relative to its profit, which usually gives more room in a bad year.
- If price is what matters most to you: Home Depot trades on the lower P/E; check first whether that is an opportunity or a sign of a business that grows less.
Neither Costco nor Home Depot wins on everything, and owning both is also an option: spreading money across several companies or an index fund reduces what rides on each one.
How Costco and Home Depot make money
Costco (COST)
Costco runs membership warehouse clubs where shoppers pay an annual fee, and those fees drive a large share of profit. It sells groceries, fresh food, electronics, gasoline and its Kirkland Signature private label, also online. It reports United States and Puerto Rico, by far its largest segment, Canada, and Other International. Full Costco analysis.
Home Depot (HD)
Home Depot runs big-box home improvement stores in the United States, Canada and Mexico. It sells building materials, tools, garden supplies, appliances and decor to do-it-yourself shoppers and to professional contractors, a group it also serves through SRS Distribution. It reports a single segment, with online sales included. Full Home Depot analysis.
Frequently asked questions: Costco vs Home Depot
Is Costco or Home Depot the better stock?
Choosing between Costco and Home Depot depends on what you are looking for. Costco is growing faster right now, and Home Depot trades on the lower P/E. Fintols does not tell you whether to buy Costco or Home Depot: it shows you the differences so you can decide.
Which pays a higher dividend, Costco or Home Depot?
As of November 4, 2026, Home Depot yields 2.79% and Costco yields 0.58%. Also check how much of their profit Costco and Home Depot pay out: if it is more than they earn, it cannot last.
Which is more expensive, Costco or Home Depot?
On P/E, Costco (50.4x) is more expensive than Home Depot (25.4x) as of November 4, 2026. A higher P/E can be justified if earnings grow faster, so compare it with each company's growth in the table.
Can I own both Costco and Home Depot?
Yes. Many people spread their money across several companies, such as Costco and Home Depot, or use index funds so they do not depend on just one. If you are starting out, decide how much you want to invest and for how long before buying Costco or Home Depot.
More comparisons with Costco or Home Depot
More companies like Costco and Home Depot: retail stocks. Educational content about Costco and Home Depot, not investment advice.