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 2026-04-11.
AbbVie Inc. · Healthcare
$208.05
+4.5% upside to fair value
Grade C
High Quality
VS
McDonald's Corporation · Consumer Cyclical
$305.68
+4.7% upside to fair value
Med Conviction
Grade B
QuantHub Verdict
MCD has more upside to fair value
(+4.7%).
ABBV trades at a lower forward P/E
(14.9x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
ABBV |
MCD |
| Current Price |
$208.05 |
$305.68 |
| Fair Value Estimate |
$217.50 |
$320.00 |
| Upside to Fair Value |
+4.5%
|
+4.7%
|
| Market Cap |
$367.9B |
$218.1B |
| Forward P/E |
14.9x
|
24.5x
|
| EV / EBITDA |
16.7x
|
18.6x
|
| Price / Sales |
6.1x
|
8.1x
|
| Price / FCF |
20.9x
|
30.3x
|
| Revenue Growth YoY |
+8.6%
|
+3.7%
|
| Gross Margin |
83.7%
|
57.4%
|
| Operating Margin |
34.7%
|
46.1%
|
| Return on Equity |
-129.24%
|
—
|
| Dividend Yield |
3.2% |
2.4% |
| FCF Yield |
4.78%
|
3.3%
|
| Analyst Consensus |
Buy
|
Buy
|
Investment Thesis
AbbVie is a leading diversified biopharmaceutical company navigating the post-Humira transition with strong momentum from Skyrizi and Rinvoq in immunology and continued growth in neuroscience. Full-year 2025 revenue reached $61.2 billion with a gross margin of 83.7% and operating margin of 34.7%, demonstrating operational strength despite the ongoing Humira erosion. Management guides to $67 billi…
McDonald's operates the world's largest quick-service restaurant franchise with over 40,000 locations across 100+ countries, generating $26.9B in FY2025 revenue with roughly 60% from franchised operations. The asset-light franchise model produces 46% operating margins and $7.2B in annual free cash flow. Revenue growth reaccelerated modestly to 3.7% in FY2025 from 1.7% in FY2024, driven by the Int…
Accumulation Zones
| Metric |
ABBV |
MCD |
| Zone Low |
$163.13 |
$240.00 |
| Zone High |
$184.88 |
$272.00 |
| In Buy Zone? |
No
|
No
|