McDonald’s Corporation (MCD)vsProcter & Gamble Company (PG)
MCD
McDonald’s Corporation
$275.75
-2.80%
CONSUMER CYCLICAL · Cap: $195.92B
PG
Procter & Gamble Company
$146.42
+0.25%
CONSUMER DEFENSIVE · Cap: $340.95B
Smart Verdict
WallStSmart Research — data-driven comparison
Procter & Gamble Company generates 216% more annual revenue ($86.72B vs $27.45B). MCD leads profitability with a 31.6% profit margin vs 19.2%. MCD appears more attractively valued with a PEG of 2.55. PG earns a higher WallStSmart Score of 61/100 (C+).
MCD
Buy55
out of 100
Grade: C-
PG
Buy61
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-80.4%
Fair Value
$157.30
Current Price
$275.75
$118.45 premium
Margin of Safety
-36.0%
Fair Value
$107.43
Current Price
$146.42
$38.99 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
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
Mega-cap, among the largest globally
Every $100 of equity generates 31 in profit
Safe zone — low bankruptcy risk
Strong operational efficiency at 23.1%
Generating 3.0B in free cash flow
Areas to Watch
ROE of 0.0% — below average capital efficiency
Weak financial health signals
Expensive relative to growth rate
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull 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%.
Bull Case : PG
The strongest argument for PG centers on Market Cap, Return on Equity, Altman Z-Score. Profitability is solid with margins at 19.2% and operating margin at 23.1%.
Bear Case : MCD
The primary concerns for MCD are Return on Equity, Piotroski F-Score, PEG Ratio.
Bear Case : PG
The primary concerns for PG are PEG Ratio.
Key Dynamics to Monitor
MCD carries more volatility with a beta of 0.44 — expect wider price swings.
MCD is growing revenue faster at 9.4% — sustainability is the question.
PG generates stronger free cash flow (3.0B), providing more financial flexibility.
Monitor RESTAURANTS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
PG scores higher overall (61/100 vs 55/100), backed by strong 19.2% 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.
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 →Procter & Gamble Company
CONSUMER DEFENSIVE · HOUSEHOLD & PERSONAL PRODUCTS · USA
The Procter & Gamble Company (P&G) is an American multinational consumer goods corporation headquartered in Cincinnati, Ohio, founded in 1837 by William Procter and James Gamble. It specializes in a wide range of personal health, consumer health, personal care, and hygiene products; these products are organized into several segments including Beauty; Grooming; Health Care; Fabric & Home Care; and Baby, Feminine, & Family Care. Before the sale of Pringles to Kellogg's, its product portfolio also included food, snacks, and beverages.
Visit Website →Compare with Other RESTAURANTS Stocks
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