McDonald’s Corporation (MCD)vsTE Connectivity Ltd (TEL)
MCD
McDonald’s Corporation
$275.75
-2.80%
CONSUMER CYCLICAL · Cap: $195.92B
TEL
TE Connectivity Ltd
$206.20
-1.84%
TECHNOLOGY · Cap: $60.19B
Smart Verdict
WallStSmart Research — data-driven comparison
McDonald’s Corporation generates 47% more annual revenue ($27.45B vs $18.70B). MCD leads profitability with a 31.6% profit margin vs 15.5%. TEL appears more attractively valued with a PEG of 1.12. TEL earns a higher WallStSmart Score of 76/100 (B+).
MCD
Buy55
out of 100
Grade: C-
TEL
Strong Buy76
out of 100
Grade: B+
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
-60.0%
Fair Value
$142.79
Current Price
$206.20
$63.41 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
Earnings expanding 7150.0% YoY
Large-cap with strong market position
Every $100 of equity generates 23 in profit
Strong operational efficiency at 20.3%
Areas to Watch
ROE of 0.0% — below average capital efficiency
Weak financial health signals
Expensive relative to growth rate
No major concerns identified
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 : TEL
The strongest argument for TEL centers on EPS Growth, Market Cap, Return on Equity. Profitability is solid with margins at 15.5% and operating margin at 20.3%. Revenue growth of 14.5% demonstrates continued momentum.
Bear Case : MCD
The primary concerns for MCD are Return on Equity, Piotroski F-Score, PEG Ratio.
Bear Case : TEL
No major red flags identified for TEL, but monitor valuation.
Key Dynamics to Monitor
TEL carries more volatility with a beta of 1.18 — expect wider price swings.
TEL is growing revenue faster at 14.5% — 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
TEL scores higher overall (76/100 vs 55/100), backed by strong 15.5% margins and 14.5% 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 →TE Connectivity Ltd
TECHNOLOGY · ELECTRONIC COMPONENTS · USA
TE Connectivity is an American Swiss-domiciled technology company that designs and manufactures connectors and sensors for several industries, such as automotive, industrial equipment, data communication systems, aerospace, defense, medical, oil and gas, consumer electronics and energy.
Compare with Other RESTAURANTS Stocks
Want to dig deeper into these stocks?