American International Group Inc (AIG)vsMcDonald’s Corporation (MCD)
AIG
American International Group Inc
$76.36
-0.09%
FINANCIAL SERVICES · Cap: $41.19B
MCD
McDonald’s Corporation
$275.75
-2.80%
CONSUMER CYCLICAL · Cap: $195.92B
Smart Verdict
WallStSmart Research — data-driven comparison
McDonald’s Corporation generates 3% more annual revenue ($27.45B vs $26.70B). MCD leads profitability with a 31.6% profit margin vs 11.8%. AIG appears more attractively valued with a PEG of 0.64. AIG earns a higher WallStSmart Score of 69/100 (B-).
AIG
Strong Buy69
out of 100
Grade: B-
MCD
Buy55
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for AIG.
Margin of Safety
-80.4%
Fair Value
$157.30
Current Price
$275.75
$118.45 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Conservative balance sheet, low leverage
Growing faster than its price suggests
Attractively priced relative to earnings
Earnings expanding 21.6% YoY
Keeps 32 of every $100 in revenue as profit
Strong operational efficiency at 45.3%
Conservative balance sheet, low leverage
Large-cap with strong market position
Generating 1.6B in free cash flow
Areas to Watch
1.4% revenue growth
ROE of 7.7% — below average capital efficiency
Distress zone — elevated risk
ROE of 0.0% — below average capital efficiency
Weak financial health signals
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : AIG
The strongest argument for AIG centers on Price/Book, Debt/Equity, PEG Ratio. PEG of 0.64 suggests the stock is reasonably priced for its growth.
Bull Case : MCD
The strongest argument for MCD centers on Profit Margin, Operating Margin, Debt/Equity. Profitability is solid with margins at 31.6% and operating margin at 45.3%.
Bear Case : AIG
The primary concerns for AIG are Revenue Growth, Return on Equity, Altman Z-Score.
Bear Case : MCD
The primary concerns for MCD are Return on Equity, Piotroski F-Score, PEG Ratio.
Key Dynamics to Monitor
AIG profiles as a value stock while MCD is a mature play — different risk/reward profiles.
AIG carries more volatility with a beta of 0.54 — expect wider price swings.
MCD is growing revenue faster at 9.4% — sustainability is the question.
MCD generates stronger free cash flow (1.6B), providing more financial flexibility.
Bottom Line
AIG scores higher overall (69/100 vs 55/100). Both earn "Strong 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.
American International Group Inc
FINANCIAL SERVICES · INSURANCE - DIVERSIFIED · USA
American International Group, Inc., also known as AIG, is an American multinational finance and insurance corporation with operations in more than 80 countries and jurisdictions. The company operates through three core businesses: General Insurance, Life & Retirement, and a standalone technology-enabled subsidiary.
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.
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