AMAT vs MCD: Which Is the Better Buy?
Side-by-side comparison of Applied Materials, Inc. and McDonald's Corporation — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-04-22.
Applied Materials, Inc. · Technology
$394.33
-58.9% 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%).
MCD trades at a lower forward P/E
(24.5x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
AMAT |
MCD |
| Current Price |
$394.33 |
$305.68 |
| Fair Value Estimate |
$162.08 |
$320.00 |
| Upside to Fair Value |
-58.9%
|
+4.7%
|
| Market Cap |
$312.9B |
$218.1B |
| Forward P/E |
39.9x
|
24.5x
|
| EV / EBITDA |
31.6x
|
18.6x
|
| Price / Sales |
11.1x
|
8.1x
|
| Price / FCF |
50.5x
|
30.3x
|
| Revenue Growth YoY |
-2.1%
|
+3.7%
|
| Gross Margin |
48.7%
|
57.4%
|
| Operating Margin |
29.1%
|
46.1%
|
| Return on Equity |
38.9%
|
—
|
| Dividend Yield |
0% |
2.4% |
| FCF Yield |
1.98%
|
3.3%
|
| Analyst Consensus |
Strong Buy
|
Buy
|
Investment Thesis
Applied Materials, Inc. is a leading global provider of semiconductor and display equipment, specializing in materials engineering solutions critical to chip manufacturing. The company benefits from a durable competitive moat supported by its market leadership, innovation engine with over 8,500 patents since 2013, and a strong management team led by CEO Gary E. Dickerson. Despite these strengths,…
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 |
AMAT |
MCD |
| Zone Low |
$121.56 |
$240.00 |
| Zone High |
$137.77 |
$272.00 |
| In Buy Zone? |
No
|
No
|