ABBV vs MCD: Which Is the Better Buy?
Side-by-side comparison of AbbVie Inc. and McDonald's Corporation — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-07-20.
AbbVie Inc. · Healthcare
$261.07
+1.2% upside to fair value
Grade C
High Quality
VS
McDonald's Corporation · Consumer Cyclical
$267.71
+20.6% upside to fair value
Med Conviction
Grade C+
High Quality
QuantHub Verdict
MCD has more upside to fair value
(+20.6%).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
ABBV |
MCD |
| Current Price |
$261.07 |
$267.71 |
| Fair Value Estimate |
$264.30 |
$322.85 |
| Upside to Fair Value |
+1.2%
|
+20.6%
|
| Market Cap |
$461.3B |
$190.2B |
| Forward P/E |
128.0x
|
—
|
| EV / EBITDA |
31.0x
|
16.4x
|
| Price / Sales |
7.3x
|
6.9x
|
| Price / FCF |
22.1x
|
27.0x
|
| Revenue Growth YoY |
+12.4%
|
+9.4%
|
| Gross Margin |
70.7%
|
57.4%
|
| Operating Margin |
27.6%
|
46.0%
|
| Return on Equity |
68.0%
|
-433.9%
|
| Dividend Yield |
0% |
2.75% |
| FCF Yield |
4.52%
|
3.7%
|
| Analyst Consensus |
Strong Buy
|
Buy
|
Investment Thesis
AbbVie Inc. is a leading healthcare company specializing in drug manufacturing with a strong focus on immunology and aesthetics. The company is transitioning from its historical Humira dominance, which has faced loss of exclusivity, toward high-growth assets like Skyrizi and Rinvoq that are driving robust revenue growth of 12.4% in the most recent quarter. Despite strong revenue growth and a dura…
McDonald's is a global quick-service restaurant franchisor and real-estate platform whose approximately 95% franchised restaurant base generates unusually high-margin, recurring royalty and rent income, supporting a 46.0% operating margin and 31.6% net margin. Business quality is high because its brand, global purchasing scale, nearly 29,000 drive-thrus, digital ecosystem and 210 million 90-day a…
Accumulation Zones
| Metric |
ABBV |
MCD |
| Zone Low |
$198.23 |
$242.14 |
| Zone High |
$224.66 |
$274.42 |
| In Buy Zone? |
No
|
Yes
|