McDonald’s Corporation (MCD)vsWells Fargo & Company (WFC)
MCD
McDonald’s Corporation
$311.70
+1.25%
CONSUMER CYCLICAL · Cap: $219.68B
WFC
Wells Fargo & Company
$80.26
+0.82%
FINANCIAL SERVICES · Cap: $245.65B
Smart Verdict
WallStSmart Research — data-driven comparison
Wells Fargo & Company generates 198% more annual revenue ($80.04B vs $26.88B). MCD leads profitability with a 31.9% profit margin vs 26.7%. WFC appears more attractively valued with a PEG of 1.66. WFC earns a higher WallStSmart Score of 72/100 (B).
MCD
Buy53
out of 100
Grade: C-
WFC
Strong Buy72
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
+53.8%
Fair Value
$173.78
Current Price
$80.26
$93.52 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
Keeps 27 of every $100 in revenue as profit
Attractively priced relative to earnings
Reasonable price relative to book value
Strong operational efficiency at 29.9%
Generating 4.1B 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
Distress zone — elevated 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 : WFC
The strongest argument for WFC centers on Market Cap, Profit Margin, P/E Ratio. Profitability is solid with margins at 26.7% and operating margin at 29.9%.
Bear Case : MCD
The primary concerns for MCD are P/E Ratio, Return on Equity, Piotroski F-Score.
Bear Case : WFC
The primary concerns for WFC are PEG Ratio, Altman Z-Score.
Key Dynamics to Monitor
MCD profiles as a mature stock while WFC is a value play — different risk/reward profiles.
WFC carries more volatility with a beta of 1.07 — expect wider price swings.
MCD is growing revenue faster at 9.7% — sustainability is the question.
WFC generates stronger free cash flow (4.1B), providing more financial flexibility.
Bottom Line
WFC scores higher overall (72/100 vs 53/100), 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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