McDonald’s Corporation (MCD)vsWells Fargo & Company (WFC)
MCD
McDonald’s Corporation
$275.75
-2.80%
CONSUMER CYCLICAL · Cap: $195.92B
WFC
Wells Fargo & Company
$75.64
-4.45%
FINANCIAL SERVICES · Cap: $242.24B
Smart Verdict
WallStSmart Research — data-driven comparison
Wells Fargo & Company generates 196% more annual revenue ($81.14B vs $27.45B). MCD leads profitability with a 31.6% profit margin vs 26.7%. WFC appears more attractively valued with a PEG of 1.43. WFC earns a higher WallStSmart Score of 74/100 (B).
MCD
Buy55
out of 100
Grade: C-
WFC
Strong Buy74
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
Intrinsic value data unavailable for WFC.
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
Reasonable price relative to book value
Keeps 27 of every $100 in revenue as profit
Attractively priced relative to earnings
Strong operational efficiency at 29.4%
Generating 9.1B in free cash flow
Areas to Watch
ROE of 0.0% — below average capital efficiency
Weak financial health signals
Expensive relative to growth rate
Distress zone — elevated risk
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 : WFC
The strongest argument for WFC centers on Market Cap, Price/Book, Profit Margin. Profitability is solid with margins at 26.7% and operating margin at 29.4%. PEG of 1.43 suggests the stock is reasonably priced for its growth.
Bear Case : MCD
The primary concerns for MCD are Return on Equity, Piotroski F-Score, PEG Ratio.
Bear Case : WFC
The primary concerns for WFC are Altman Z-Score.
Key Dynamics to Monitor
WFC carries more volatility with a beta of 0.96 — expect wider price swings.
MCD is growing revenue faster at 9.4% — sustainability is the question.
WFC generates stronger free cash flow (9.1B), providing more financial flexibility.
Monitor RESTAURANTS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
WFC scores higher overall (74/100 vs 55/100), backed by strong 26.7% margins. 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 →Wells Fargo & Company
FINANCIAL SERVICES · BANKS - DIVERSIFIED · USA
Wells Fargo & Company is an American multinational financial services company with corporate headquarters in San Francisco, California, operational headquarters in Manhattan, and managerial offices throughout the United States and overseas.
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