McDonald’s Corporation (MCD)vsVisa Inc. Class A (V)
MCD
McDonald’s Corporation
$311.70
+1.25%
CONSUMER CYCLICAL · Cap: $219.68B
V
Visa Inc. Class A
$304.91
+0.38%
FINANCIAL SERVICES · Cap: $585.66B
Smart Verdict
WallStSmart Research — data-driven comparison
Visa Inc. Class A generates 54% more annual revenue ($41.39B vs $26.88B). V leads profitability with a 50.2% profit margin vs 31.9%. V appears more attractively valued with a PEG of 1.65. V earns a higher WallStSmart Score of 68/100 (B-).
MCD
Buy53
out of 100
Grade: C-
V
Strong Buy68
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
+17.4%
Fair Value
$369.26
Current Price
$304.91
$64.35 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
Every $100 of equity generates 54 in profit
Keeps 50 of every $100 in revenue as profit
Strong operational efficiency at 68.3%
Generating 6.4B 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
Moderate valuation
Trading at 15.2x book value
Grey zone — moderate risk
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 : V
The strongest argument for V centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 50.2% and operating margin at 68.3%. Revenue growth of 14.6% demonstrates continued momentum.
Bear Case : MCD
The primary concerns for MCD are P/E Ratio, Return on Equity, Piotroski F-Score.
Bear Case : V
The primary concerns for V are PEG Ratio, P/E Ratio, Price/Book.
Key Dynamics to Monitor
V carries more volatility with a beta of 0.79 — expect wider price swings.
V is growing revenue faster at 14.6% — sustainability is the question.
V generates stronger free cash flow (6.4B), providing more financial flexibility.
Monitor RESTAURANTS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
V scores higher overall (68/100 vs 53/100), backed by strong 50.2% margins and 14.6% 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 →Visa Inc. Class A
FINANCIAL SERVICES · CREDIT SERVICES · USA
Visa Inc. is an American multinational financial services corporation headquartered in Foster City, California, United States. It facilitates electronic funds transfers throughout the world, most commonly through Visa-branded credit cards, debit cards and prepaid cards. Visa is one of the world's most valuable companies.
Visit Website →Compare with Other RESTAURANTS Stocks
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