Brookfield Business Partners LP (BBU)vsMcDonald’s Corporation (MCD)
BBU
Brookfield Business Partners LP
$32.62
+6.60%
INDUSTRIALS · Cap: $2.71B
MCD
McDonald’s Corporation
$311.70
-0.88%
CONSUMER CYCLICAL · Cap: $219.68B
Smart Verdict
WallStSmart Research — data-driven comparison
Brookfield Business Partners LP generates 2% more annual revenue ($27.46B vs $26.88B). MCD leads profitability with a 31.9% profit margin vs -0.1%. MCD earns a higher WallStSmart Score of 53/100 (C-).
BBU
Buy52
out of 100
Grade: C-
MCD
Buy53
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for BBU.
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
Earnings expanding 80.0% YoY
Reasonable price relative to book value
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
ROE of 2.4% — below average capital efficiency
Weak financial health signals
Revenue declined 4.5%
Currently unprofitable
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 : BBU
The strongest argument for BBU centers on EPS Growth, Price/Book.
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 : BBU
The primary concerns for BBU are Return on Equity, Piotroski F-Score, Revenue Growth. Debt-to-equity of 19.07 is elevated, increasing financial risk.
Bear Case : MCD
The primary concerns for MCD are P/E Ratio, Return on Equity, Piotroski F-Score.
Key Dynamics to Monitor
BBU profiles as a turnaround stock while MCD is a mature play — different risk/reward profiles.
BBU carries more volatility with a beta of 1.32 — expect wider price swings.
MCD is growing revenue faster at 9.7% — sustainability is the question.
MCD generates stronger free cash flow (1.6B), providing more financial flexibility.
Bottom Line
MCD scores higher overall (53/100 vs 52/100), 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.
Brookfield Business Partners LP
INDUSTRIALS · CONGLOMERATES · USA
Brookfield Business Partners LP (BBU) is a leading global alternative asset manager that focuses on acquiring, operating, and enhancing a diversified portfolio of high-quality, cash-generating businesses. Capitalizing on the robust resources and expertise of its parent company, Brookfield Asset Management, BBU strategically invests in sectors such as industrials, utilities, and consumer products, employing a disciplined approach to operational improvements. With an emphasis on delivering sustainable cash distributions and capital appreciation, BBU is well-equipped to capitalize on growth opportunities, positioning itself to generate superior returns for its investors over the long term.
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 CONGLOMERATES Stocks
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