Lowe's Companies Inc (LOW)vsMcDonald’s Corporation (MCD)
LOW
Lowe's Companies Inc
$215.68
-1.17%
CONSUMER CYCLICAL · Cap: $114.64B
MCD
McDonald’s Corporation
$273.02
-0.55%
CONSUMER CYCLICAL · Cap: $187.27B
Smart Verdict
WallStSmart Research — data-driven comparison
Lowe's Companies Inc generates 222% more annual revenue ($88.43B vs $27.45B). MCD leads profitability with a 31.6% profit margin vs 7.5%. LOW appears more attractively valued with a PEG of 1.33. MCD earns a higher WallStSmart Score of 55/100 (C-).
LOW
Hold50
out of 100
Grade: D+
MCD
Buy55
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-55.1%
Fair Value
$140.74
Current Price
$215.68
$74.94 premium
Margin of Safety
-79.3%
Fair Value
$152.31
Current Price
$273.02
$120.71 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Conservative balance sheet, low leverage
Large-cap with strong market position
Attractively priced relative to earnings
Generating 2.8B in free cash flow
Keeps 32 of every $100 in revenue as profit
Strong operational efficiency at 44.3%
Conservative balance sheet, low leverage
Large-cap with strong market position
Generating 1.7B in free cash flow
Areas to Watch
Grey zone — moderate risk
ROE of 0.0% — below average capital efficiency
7.5% margin — thin
Weak financial health signals
ROE of 0.0% — below average capital efficiency
Weak financial health signals
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : LOW
The strongest argument for LOW centers on Debt/Equity, Market Cap, P/E Ratio. Revenue growth of 10.3% demonstrates continued momentum. PEG of 1.33 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 44.3%.
Bear Case : LOW
The primary concerns for LOW are Altman Z-Score, Return on Equity, Profit Margin.
Bear Case : MCD
The primary concerns for MCD are Return on Equity, Piotroski F-Score, PEG Ratio.
Key Dynamics to Monitor
LOW profiles as a value stock while MCD is a mature play — different risk/reward profiles.
LOW carries more volatility with a beta of 0.85 — expect wider price swings.
LOW is growing revenue faster at 10.3% — sustainability is the question.
LOW generates stronger free cash flow (2.8B), providing more financial flexibility.
Bottom Line
MCD scores higher overall (55/100 vs 50/100), backed by strong 31.6% margins. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Lowe's Companies Inc
CONSUMER CYCLICAL · HOME IMPROVEMENT RETAIL · USA
Lowe's Companies, Inc. is an American retail company specializing in home improvement. Headquartered in Mooresville, North Carolina, the company operates a chain of retail stores in the United States and Canada.
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 HOME IMPROVEMENT RETAIL Stocks
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