McDonald’s Corporation (MCD)vsUnion Pacific Corporation (UNP)
MCD
McDonald’s Corporation
$311.70
+1.25%
CONSUMER CYCLICAL · Cap: $219.68B
UNP
Union Pacific Corporation
$241.33
+0.69%
INDUSTRIALS · Cap: $142.22B
Smart Verdict
WallStSmart Research — data-driven comparison
McDonald’s Corporation generates 10% more annual revenue ($26.88B vs $24.51B). MCD leads profitability with a 31.9% profit margin vs 29.1%. UNP appears more attractively valued with a PEG of 2.69. UNP earns a higher WallStSmart Score of 60/100 (C).
MCD
Buy53
out of 100
Grade: C-
UNP
Buy60
out of 100
Grade: C
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
-13.1%
Fair Value
$211.98
Current Price
$241.33
$29.35 premium
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
Every $100 of equity generates 40 in profit
Strong operational efficiency at 40.9%
Large-cap with strong market position
Keeps 29 of every $100 in revenue as profit
Generating 1.2B in free cash flow
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
Revenue declined 0.6%
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 : UNP
The strongest argument for UNP centers on Return on Equity, Operating Margin, Market Cap. Profitability is solid with margins at 29.1% and operating margin at 40.9%.
Bear Case : MCD
The primary concerns for MCD are P/E Ratio, Return on Equity, Piotroski F-Score.
Bear Case : UNP
The primary concerns for UNP are PEG Ratio, Revenue Growth.
Key Dynamics to Monitor
MCD profiles as a mature stock while UNP is a declining play — different risk/reward profiles.
UNP carries more volatility with a beta of 0.95 — expect wider price swings.
MCD is growing revenue faster at 9.7% — sustainability is the question.
MCD generates stronger free cash flow (1.6B), providing more financial flexibility.
Bottom Line
UNP scores higher overall (60/100 vs 53/100), backed by strong 29.1% 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 →Union Pacific Corporation
INDUSTRIALS · RAILROADS · USA
The Union Pacific Corporation (Union Pacific) is a publicly traded railroad holding company. It was incorporated in Utah in 1969 and is headquartered in Omaha, Nebraska. It is the parent company of the current, Delaware-registered, form of the Union Pacific Railroad.
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