COST vs. MSFT: Costco Wholesale vs. Microsoft Stock Comparison

November 11, 2026

How do Costco Wholesale (COST) and Microsoft (MSFT) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.

Company Profile

Costco Wholesale (COST) is classified in the Consumer Staples sector (Consumer Staples Distribution & Retail), whereas Microsoft (MSFT) belongs to Information Technology (Software & Services) — their GICS classifications point to very different parts of the market.

Company profile comparison for Costco Wholesale (COST) and Microsoft (MSFT)
Profile Item	COST	MSFT
Name	Costco Wholesale Corp	Microsoft Corporation Common Stock
Country/Region	United States	United States
GICS Sector	Consumer Staples	Information Technology
GICS Industry Group	Consumer Staples Distribution & Retail	Software & Services
GICS Industry	Consumer Staples Distribution & Retail	Software
GICS Sub-Industry	Consumer Staples Merchandise Retail	Systems Software
Market Capitalization	466.86 billion USD	3,940.41 billion USD
Currency	USD	USD
Exchange	Nasdaq	Nasdaq
Listing Date	July 9, 1986	March 13, 1986
Security Type	Common Stock	Common Stock

Price Performance

Cumulative Growth

COST

MSFT

GSPC

Costco Wholesale (COST) vs. Microsoft (MSFT), with S&P 500 (GSPC) for reference: Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Costco Wholesale (COST) and Microsoft (MSFT). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Costco Wholesale (COST) and Microsoft (MSFT). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for Costco Wholesale (COST) and Microsoft (MSFT)
Metric	COST	MSFT
Total Return (1Y)	14.87%	10.30%
Total Return (3Y, Annualized)	24.84%	15.53%
Total Return (5Y, Annualized)	16.92%	11.01%

Risk Profile

Drawdown History

COST

MSFT

GSPC

Costco Wholesale (COST) vs. Microsoft (MSFT), with S&P 500 (GSPC) for reference: Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Costco Wholesale (COST) and Microsoft (MSFT). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Costco Wholesale (COST) and Microsoft (MSFT)
Metric	COST	MSFT
Volatility (1Y, Annualized)	20.30%	33.91%
Beta (5Y)	0.84	1.03
Max Drawdown (5Y)	-31.40%	-37.15%
Avg. Volume (3M)	2.15M	22.95M

Risk-Adjusted Performance

Risk-Return Positioning

COST and MSFT are plotted by 1-year volatility (risk) and 1-year return. Each dashed Capital Allocation Line uses that stock's own industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for Costco Wholesale (COST) and Microsoft (MSFT)
Metric	COST	MSFT
Sharpe Ratio (1Y)	0.52	0.18
Sortino Ratio (1Y)	0.77	0.28

Profitability

ROE (TTM)

Both Costco Wholesale (COST) at 28.40% and Microsoft (MSFT) at 34.22% sit in the top peer quartile for ROE, suggesting each generates more profit from shareholders’ equity than typical industry peers.

COST

Consumer Staples Distribution & Retail industry group

28.40%

Max: 33.48%
COST: 28.40%
Q3: 22.31%
Median: 15.57%
Q1: 7.66%
Min: -2.27%

MSFT

Software & Services industry group

34.22%

Max: 53.85%
MSFT: 34.22%
Q3: 17.90%
Median: 6.59%
Q1: -9.59%
Min: -50.52%

Costco Wholesale (COST) vs. Microsoft (MSFT): A comparison of their ROE against their respective Consumer Staples Distribution & Retail and Software & Services industry group benchmarks.

Net Margin (TTM)

Microsoft (MSFT) at 41.17% retains a top-quartile share of revenue as profit, ahead of Costco Wholesale (COST) at 3.04%, which keeps about the industry-typical share.

COST

Consumer Staples Distribution & Retail industry group

3.04%

Max: 5.45%
Q3: 3.42%
COST: 3.04%
Median: 2.44%
Q1: 1.86%
Min: -0.06%

MSFT

Software & Services industry group

41.17%

MSFT: 41.17%
Max: 41.17%
Q3: 15.28%
Median: 4.63%
Q1: -5.42%
Min: -33.17%

Costco Wholesale (COST) vs. Microsoft (MSFT): A comparison of their net margin against their respective Consumer Staples Distribution & Retail and Software & Services industry group benchmarks.

Operating Margin (TTM)

Microsoft (MSFT) at 49.76% turns sales into operating profit above its industry’s benchmark range, while Costco Wholesale (COST) at 3.79% operates around its industry’s norm.

COST

Consumer Staples Distribution & Retail industry group

3.79%

Max: 6.81%
Q3: 5.49%
Median: 3.84%
COST: 3.79%
Q1: 2.00%
Min: 0.97%

MSFT

Software & Services industry group

49.76%

MSFT: 49.76%
Max: 46.89%
Q3: 17.64%
Median: 8.73%
Q1: -2.13%
Min: -30.45%

Costco Wholesale (COST) vs. Microsoft (MSFT): A comparison of their operating margin against their respective Consumer Staples Distribution & Retail and Software & Services industry group benchmarks.

Profitability Metrics

Profitability metrics for Costco Wholesale (COST) and Microsoft (MSFT)
Metric	COST	MSFT
ROE (TTM)	28.40%	34.22%
ROA (TTM)	8.66%	14.41%
Net Margin (TTM)	3.04%	41.17%
Operating Margin (TTM)	3.79%	49.76%
Gross Margin (TTM)	12.77%	67.66%

Growth

Revenue Growth

Both Costco Wholesale (COST) at 10.14% and Microsoft (MSFT) at 17.79% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.

Costco Wholesale (COST) vs. Microsoft (MSFT): A comparison of their Revenue Growth across different time periods.

EPS Growth

Only one side can be read here: Microsoft (MSFT) reports EPS growth of 31.60%, ranked against its industry; Costco Wholesale (COST) has no EPS growth figure this period.

Costco Wholesale (COST) vs. Microsoft (MSFT): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Costco Wholesale (COST) and Microsoft (MSFT)
Metric	COST	MSFT
Revenue Growth (YoY)	10.14%	17.79%
Revenue Growth (3Y CAGR)	7.76%	16.12%
EPS Growth (YoY)	--	31.60%
EPS Growth (3Y CAGR)	--	22.86%

Financial Strength

Current Ratio (MRQ)

Both Costco Wholesale (COST) at 1.06 and Microsoft (MSFT) at 1.23 carry current ratio within their industries’ typical mid-ranges, suggesting balanced short-term liquidity relative to peers.

COST

Consumer Staples Distribution & Retail industry group

1.06

Max: 2.04
Q3: 1.45
Median: 1.17
COST: 1.06
Q1: 1.00
Min: 0.69

MSFT

Software & Services industry group

1.23

Max: 5.11
Q3: 2.77
Median: 1.67
MSFT: 1.23
Q1: 1.01
Min: 0.03

Costco Wholesale (COST) vs. Microsoft (MSFT): A comparison of their current ratio against their respective Consumer Staples Distribution & Retail and Software & Services industry group benchmarks.

Debt / Equity (MRQ)

Costco Wholesale (COST) at 0.28 keeps leverage in the lower industry quartile, while Microsoft (MSFT) at 0.28 runs a more typical debt-to-equity mix.

COST

Consumer Staples Distribution & Retail industry group

0.28

Max: 2.59
Q3: 1.83
Median: 1.24
Q1: 0.63
COST: 0.28
Min: 0.01

MSFT

Software & Services industry group

0.28

Max: 2.52
Q3: 1.13
Median: 0.40
MSFT: 0.28
Q1: 0.07
Min: 0.00

Costco Wholesale (COST) vs. Microsoft (MSFT): A comparison of their debt-to-equity ratio against their respective Consumer Staples Distribution & Retail and Software & Services industry group benchmarks.

Financial Strength Metrics

Financial strength metrics for Costco Wholesale (COST) and Microsoft (MSFT)
Metric	COST	MSFT
Current Ratio (MRQ)	1.06	1.23
Debt / Equity (MRQ)	0.28	0.28
Net Debt / EBITDA	-0.78	0.34

Dividends

Dividend Yield (TTM)

Costco Wholesale (COST) at 0.52% pays an industry-typical yield; Microsoft (MSFT) at 0.69% is above its entire peer range — the higher number, but one that calls for a look at payout sustainability before treating it as an advantage.

COST

Consumer Staples Distribution & Retail industry group

0.52%

Max: 2.90%
Q3: 1.72%
COST: 0.52%
Median: 0.43%
Q1: 0.00%
Min: 0.00%

MSFT

Software & Services industry group

0.69%

MSFT: 0.69%
Max: 0.00%
Q3: 0.00%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

Costco Wholesale (COST) vs. Microsoft (MSFT): A comparison of their dividend yield against their respective Consumer Staples Distribution & Retail and Software & Services industry group benchmarks.

Dividend Payout Ratio (TTM)

Costco Wholesale (COST) at 26.69% keeps its payout in the industry’s typical band, while Microsoft (MSFT) at 19.00% pays out more than any of its peers — the most stretched cover in its group.

COST

Consumer Staples Distribution & Retail industry group

26.69%

Max: 57.98%
Q3: 30.05%
COST: 26.69%
Median: 11.72%
Q1: 0.00%
Min: 0.00%

MSFT

Software & Services industry group

19.00%

MSFT: 19.00%
Max: 0.00%
Q3: 0.00%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

Costco Wholesale (COST) vs. Microsoft (MSFT): A comparison of their payout ratio against their respective Consumer Staples Distribution & Retail and Software & Services industry group benchmarks.

Dividend Metrics

Dividend metrics for Costco Wholesale (COST) and Microsoft (MSFT)
Metric	COST	MSFT
Dividend Yield (TTM)	0.52%	0.69%
Dividend Payout Ratio (TTM)	26.69%	19.00%

Valuation

P/E Ratio (TTM)

Microsoft (MSFT) at 27.69 is near its industry’s usual P/E ratio, while Costco Wholesale (COST) at 50.75 sits in the richer quartile — COST needs stronger growth or earnings quality to justify the premium.

COST

Consumer Staples Distribution & Retail industry group

50.75

COST: 50.75
Max: 50.75
Q3: 33.64
Median: 22.19
Q1: 16.09
Min: 9.28

MSFT

Software & Services industry group

27.69

Max: 112.94
Q3: 60.32
Median: 32.91
MSFT: 27.69
Q1: 18.77
Min: 6.69

Costco Wholesale (COST) vs. Microsoft (MSFT): A comparison of their P/E ratio against their respective Consumer Staples Distribution & Retail and Software & Services industry group benchmarks.

P/S Ratio (TTM)

Both Costco Wholesale (COST) at 1.54 and Microsoft (MSFT) at 11.37 command a richer price per dollar of sales than most peers, sitting in the upper P/S ratio quartile of their industries.

COST

Consumer Staples Distribution & Retail industry group

1.54

COST: 1.54
Max: 1.54
Q3: 0.81
Median: 0.47
Q1: 0.26
Min: 0.02

MSFT

Software & Services industry group

11.37

Max: 17.91
MSFT: 11.37
Q3: 8.78
Median: 4.25
Q1: 2.23
Min: 0.02

Costco Wholesale (COST) vs. Microsoft (MSFT): A comparison of their P/S ratio against their respective Consumer Staples Distribution & Retail and Software & Services industry group benchmarks.

P/B Ratio (MRQ)

Microsoft (MSFT) at 8.38 sits near its industry’s typical P/B ratio, while Costco Wholesale (COST) at 13.04 prices above its benchmark range — COST looks rich relative to book.

COST

Consumer Staples Distribution & Retail industry group

13.04

COST: 13.04
Max: 10.15
Q3: 6.27
Median: 3.70
Q1: 1.85
Min: 0.93

MSFT

Software & Services industry group

8.38

Max: 16.63
Q3: 8.50
MSFT: 8.38
Median: 4.30
Q1: 1.92
Min: -3.90

Costco Wholesale (COST) vs. Microsoft (MSFT): A comparison of their P/B ratio against their respective Consumer Staples Distribution & Retail and Software & Services industry group benchmarks.

Valuation Metrics

Valuation metrics for Costco Wholesale (COST) and Microsoft (MSFT)
Metric	COST	MSFT
P/E Ratio (TTM)	50.75	27.69
P/S Ratio (TTM)	1.54	11.37
P/B Ratio (MRQ)	13.04	8.38
Free Cash Flow Yield (TTM)	1.45%	0.08%