Quick verdict: COST vs PG in 2026

Overall, The Procter & Gamble Company (PG) appears to have a stronger fundamental and valuation profile when compared to Costco Wholesale Corporation (COST) in 2026, leading on nine out of twelve comparable metrics according to our scorecard. While COST is the clear growth leader with superior revenue expansion, PG stands out as the value and margin leader, offering more attractive valuation multiples and significantly higher profitability. Analysts, however, show a slightly higher ‘Buy’ percentage for COST, yet PG offers marginally greater price target upside. Not investment advice.

COST vs PG: key metrics side by side

Full side-by-side comparison of COST and PG across valuation, profitability, growth and analyst sentiment. Data updated 2026-05-07.

COST vs PG valuation comparison

A key area for investors considering COST vs PG valuation is the stark difference in their current multiples. Costco (COST) trades at a P/E ratio of 51.96x, which is considerably higher than The Procter & Gamble Company (PG) at 21.31x. Similarly, COST’s P/B ratio stands at 13.84x, dwarfing PG’s more conservative 6.52x. These metrics suggest that investors are paying a significantly higher premium for Costco’s earnings and assets compared to P&G, reflecting the market’s perception of Costco’s growth prospects versus P&G’s stability.

Delving deeper into the valuation, the discounted cash flow (DCF) analysis presents an even more compelling picture for PG. Alert Invest’s DCF model indicates a potential upside of +52.9% for PG, suggesting the stock may be undervalued at its current price of $147.23 relative to its intrinsic value. In contrast, COST’s DCF suggests a substantial downside of -67.4% from its current price of $1000.54, implying it is significantly overvalued based on its future cash flow projections. This difference highlights that, from a pure valuation standpoint in 2026, PG appears to be the much cheaper and potentially more attractive investment.

COST vs PG growth comparison

When evaluating the growth prospects in a COST vs PG stock comparison for 2026, Costco (COST) clearly demonstrates stronger momentum. Costco reported a robust year-over-year revenue growth of 8.2%, indicative of its continued ability to expand its membership base and sales volume. This level of growth is impressive for a company of its size, reaching $275.24B in revenue, and points to ongoing consumer demand for its bulk products and unique shopping experience.

On the other hand, The Procter & Gamble Company (PG), a mature consumer staples giant, showed a modest revenue growth of just +0.3% year-over-year, with total revenue at $84.28B. While P&G operates in a highly stable, but slower-growing segment, its minimal revenue expansion highlights its focus on market share maintenance and profitability rather than aggressive top-line growth. For investors prioritizing top-line expansion and market penetration, COST has a definitive edge in the growth comparison.

COST vs PG profitability

In terms of profitability, The Procter & Gamble Company (PG) significantly outperforms Costco (COST), demonstrating superior efficiency in converting revenue into profit. PG boasts an impressive net margin of 19.22% and an EBITDA margin of 26.82%. These high margins are characteristic of a company with strong brand power, pricing leverage, and efficient operations within the consumer goods sector, allowing it to retain a substantial portion of its sales as profit.

Conversely, Costco (COST) operates on much thinner margins, with a net margin of 2.99% and an EBITDA margin of 4.92%. This is typical for a wholesale membership club business model, where the focus is on high sales volume and low prices, often generating a significant portion of profit from membership fees rather than product markups. While both companies have ROE listed as N/A%, PG’s free cash flow yield of 4.39% also surpasses COST’s 2.05%, indicating PG’s greater ability to generate cash from its operations after accounting for capital expenditures. Therefore, for an investor prioritizing strong profitability and cash generation from existing revenues, PG is the clear winner.

Analyst ratings: COST vs PG

Analyst sentiment provides valuable insight into the future outlook of these two companies. For Costco (COST), 58 analysts cover the stock, with a strong 65.5% issuing a “Buy” rating. The consensus target price is $1070, suggesting a potential upside of +6.9% from its current price of $1000.54. This indicates a generally bullish perspective on Costco’s continued performance and market position, aligning with its growth trajectory and stable business model.

The Procter & Gamble Company (PG) is covered by 52 analysts, with 53.8% recommending a “Buy.” The consensus target price for PG is $161.88, implying a higher potential upside of +10.0% from its current price of $147.23. While COST has a higher percentage of ‘Buy’ ratings, PG’s slightly greater projected price target upside suggests that analysts see more immediate appreciation potential in P&G. Both companies carry a “Buy” consensus rating overall, reflecting confidence in their respective market leadership positions within the Consumer Defensive sector.

Should I buy COST or PG stock in 2026?

Deciding whether should I buy COST or PG stock in 2026 largely depends on your investment strategy and risk tolerance. For growth-oriented investors, Costco (COST) presents a more compelling narrative. Its impressive revenue growth of 8.2% far outpaces P&G’s 0.3%, indicating a company with strong market momentum and potential for continued expansion. While its valuation multiples are high, growth investors might justify the premium for a dominant player in the retail sector that consistently delivers top-line expansion and commands strong customer loyalty through its membership model.

For value investors, The Procter & Gamble Company (PG) emerges as the more attractive option based on its fundamentals and valuation. PG’s significantly lower P/E ratio of 21.31x compared to COST’s 51.96x, along with a P/B ratio of 6.52x versus 13.84x, suggests it is trading at a much more reasonable price relative to its earnings and assets. Furthermore, the robust DCF upside of +52.9% for PG, contrasting sharply with COST’s -67.4%, strongly points towards PG being undervalued and offering a greater margin of safety. This makes PG a potential choice for those seeking quality at a reasonable price within the consumer defensive sector.

When considering income, both COST and PG offer relatively modest dividend yields. PG’s dividend yield of 0.03% is marginally higher than COST’s 0.01%. While neither stock is a high-yield dividend play, PG does offer a slightly better return for income-focused investors. Ultimately, COST appeals to those prioritizing strong revenue growth and market dominance, while PG is better suited for investors seeking value, superior profitability, and a stable, albeit slower, appreciation in a well-established global leader. This is not investment advice; always conduct your own thorough research.

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