Abbott Laboratories (ABT)vsMcDonald’s Corporation (MCD)
ABT
Abbott Laboratories
$104.83
+0.74%
HEALTHCARE · Cap: $180.82B
MCD
McDonald’s Corporation
$311.70
+1.25%
CONSUMER CYCLICAL · Cap: $219.68B
Smart Verdict
WallStSmart Research — data-driven comparison
Abbott Laboratories generates 65% more annual revenue ($44.33B vs $26.88B). MCD leads profitability with a 31.9% profit margin vs 14.7%. ABT appears more attractively valued with a PEG of 1.52. MCD earns a higher WallStSmart Score of 53/100 (C-).
ABT
Buy51
out of 100
Grade: C-
MCD
Buy53
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-315.5%
Fair Value
$25.23
Current Price
$104.83
$79.60 premium
Margin of Safety
-31.1%
Fair Value
$237.84
Current Price
$311.70
$73.86 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Large-cap with strong market position
Strong operational efficiency at 21.6%
Generating 2.6B in free cash flow
Mega-cap, among the largest globally
Keeps 32 of every $100 in revenue as profit
Strong operational efficiency at 45.1%
Conservative balance sheet, low leverage
Generating 1.6B in free cash flow
Areas to Watch
Expensive relative to growth rate
Moderate valuation
4.4% revenue growth
Weak financial health signals
Moderate valuation
ROE of 0.0% — below average capital efficiency
Weak financial health signals
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : ABT
The strongest argument for ABT centers on Market Cap, Operating Margin, Free Cash Flow.
Bull Case : MCD
The strongest argument for MCD centers on Market Cap, Profit Margin, Operating Margin. Profitability is solid with margins at 31.9% and operating margin at 45.1%.
Bear Case : ABT
The primary concerns for ABT are PEG Ratio, P/E Ratio, Revenue Growth.
Bear Case : MCD
The primary concerns for MCD are P/E Ratio, Return on Equity, Piotroski F-Score.
Key Dynamics to Monitor
ABT profiles as a value stock while MCD is a mature play — different risk/reward profiles.
ABT carries more volatility with a beta of 0.74 — expect wider price swings.
MCD is growing revenue faster at 9.7% — sustainability is the question.
ABT generates stronger free cash flow (2.6B), providing more financial flexibility.
Bottom Line
MCD scores higher overall (53/100 vs 51/100), backed by strong 31.9% margins. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Abbott Laboratories
HEALTHCARE · MEDICAL DEVICES · USA
Abbott Laboratories is an American multinational medical devices and health care company with headquarters in Abbott Park, Illinois, United States. The company was founded by Chicago physician Wallace Calvin Abbott in 1888 to formulate known drugs; today, it sells medical devices, diagnostics, branded generic medicines and nutritional products. It split off its research-based pharmaceuticals business into AbbVie in 2013.
Visit Website →McDonald’s Corporation
CONSUMER CYCLICAL · RESTAURANTS · USA
McDonald's Corporation is an American fast food company, founded in 1940 as a restaurant operated by Richard and Maurice McDonald, in San Bernardino, California, United States. They rechristened their business as a hamburger stand, and later turned the company into a franchise, with the Golden Arches logo being introduced in 1953 at a location in Phoenix, Arizona.
Visit Website →Compare with Other MEDICAL DEVICES Stocks
Want to dig deeper into these stocks?