McDonald’s Corporation (MCD)vsToyota Motor Corporation ADR (TM)
MCD
McDonald’s Corporation
$252.53
-0.21%
CONSUMER CYCLICAL · Cap: $178.70B
TM
Toyota Motor Corporation ADR
$198.20
+2.97%
CONSUMER CYCLICAL · Cap: $233.41B
Smart Verdict
WallStSmart Research — data-driven comparison
Toyota Motor Corporation ADR generates 187457% more annual revenue ($51.96T vs $27.70B). MCD leads profitability with a 31.7% profit margin vs 8.6%. TM appears more attractively valued with a PEG of 1.56. TM earns a higher WallStSmart Score of 65/100 (C+).
MCD
Buy53
out of 100
Grade: C-
TM
Buy65
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-62.5%
Fair Value
$155.44
Current Price
$252.53
$97.09 premium
Intrinsic value data unavailable for TM.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Keeps 32 of every $100 in revenue as profit
Strong operational efficiency at 46.5%
Conservative balance sheet, low leverage
Large-cap with strong market position
Generating 2.0B in free cash flow
Mega-cap, among the largest globally
Attractively priced relative to earnings
Earnings expanding 86.9% YoY
Areas to Watch
Expensive relative to growth rate
3.7% revenue growth
ROE of 0.0% — below average capital efficiency
Weak financial health signals
Expensive relative to growth rate
Trading at 16.1x book value
Distress zone — elevated risk
Elevated debt levels
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 31.7% and operating margin at 46.5%.
Bull Case : TM
The strongest argument for TM centers on Market Cap, P/E Ratio, EPS Growth. Revenue growth of 10.4% demonstrates continued momentum.
Bear Case : MCD
The primary concerns for MCD are PEG Ratio, Revenue Growth, Return on Equity.
Bear Case : TM
The primary concerns for TM are PEG Ratio, Price/Book, Altman Z-Score.
Key Dynamics to Monitor
MCD carries more volatility with a beta of 0.41 — expect wider price swings.
TM is growing revenue faster at 10.4% — sustainability is the question.
MCD generates stronger free cash flow (2.0B), providing more financial flexibility.
Monitor RESTAURANTS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
TM scores higher overall (65/100 vs 53/100) and 10.4% revenue growth. 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 →Toyota Motor Corporation ADR
CONSUMER CYCLICAL · AUTO MANUFACTURERS · USA
Toyota Motor Corporation designs, manufactures, assembles and sells passenger cars, minivans and commercial vehicles, and related parts and accessories. The company is headquartered in Toyota, Japan.
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