McDonald’s Corporation (MCD)vsMorgan Stanley (MS)
MCD
McDonald’s Corporation
$311.70
+1.25%
CONSUMER CYCLICAL · Cap: $219.68B
MS
Morgan Stanley
$165.65
-0.13%
FINANCIAL SERVICES · Cap: $263.03B
Smart Verdict
WallStSmart Research — data-driven comparison
Morgan Stanley generates 161% more annual revenue ($70.30B vs $26.88B). MCD leads profitability with a 31.9% profit margin vs 24.0%. MS appears more attractively valued with a PEG of 1.83. MS earns a higher WallStSmart Score of 76/100 (B+).
MCD
Buy53
out of 100
Grade: C-
MS
Strong Buy76
out of 100
Grade: B+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-31.1%
Fair Value
$237.84
Current Price
$311.70
$73.86 premium
Margin of Safety
+59.3%
Fair Value
$407.18
Current Price
$165.65
$241.53 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
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
Mega-cap, among the largest globally
Strong operational efficiency at 38.6%
Keeps 24 of every $100 in revenue as profit
Attractively priced relative to earnings
Reasonable price relative to book value
Earnings expanding 20.7% YoY
Areas to Watch
Moderate valuation
ROE of 0.0% — below average capital efficiency
Weak financial health signals
Expensive relative to growth rate
Expensive relative to growth rate
Weak financial health signals
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull 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%.
Bull Case : MS
The strongest argument for MS centers on Market Cap, Operating Margin, Profit Margin. Profitability is solid with margins at 24.0% and operating margin at 38.6%. Revenue growth of 11.0% demonstrates continued momentum.
Bear Case : MCD
The primary concerns for MCD are P/E Ratio, Return on Equity, Piotroski F-Score.
Bear Case : MS
The primary concerns for MS are PEG Ratio, Piotroski F-Score, Free Cash Flow.
Key Dynamics to Monitor
MS carries more volatility with a beta of 1.21 — expect wider price swings.
MS is growing revenue faster at 11.0% — sustainability is the question.
MCD generates stronger free cash flow (1.6B), providing more financial flexibility.
Monitor RESTAURANTS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
MS scores higher overall (76/100 vs 53/100), backed by strong 24.0% margins and 11.0% revenue growth. 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.
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 →Morgan Stanley
FINANCIAL SERVICES · CAPITAL MARKETS · USA
Morgan Stanley is an American multinational investment bank and financial services company headquartered at 1585 Broadway in the Morgan Stanley Building, Midtown Manhattan, New York City.
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