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 2026-05-20.
Applied Materials, Inc. · Technology
$406.91
-12.0% upside to fair value
Grade B-
High Quality
VS
McDonald's Corporation · Consumer Cyclical
$275.75
+18.8% upside to fair value
Grade C
High Quality
QuantHub Verdict
MCD has more upside to fair value
(+18.8%).
MCD trades at a lower forward P/E
(22.6x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
AMAT |
MCD |
| Current Price |
$406.91 |
$275.75 |
| Fair Value Estimate |
$358.00 |
$327.62 |
| Upside to Fair Value |
-12.0%
|
+18.8%
|
| Market Cap |
$322.9B |
$196.0B |
| Forward P/E |
30.3x
|
22.6x
|
| EV / EBITDA |
30.2x
|
16.7x
|
| Price / Sales |
10.2x
|
7.1x
|
| Price / FCF |
51.6x
|
27.9x
|
| Revenue Growth YoY |
+11.0%
|
+9.4%
|
| Gross Margin |
49.9%
|
57.4%
|
| Operating Margin |
31.9%
|
46.0%
|
| Return on Equity |
47.0%
|
-434.0%
|
| Dividend Yield |
0.45% |
0% |
| FCF Yield |
1.94%
|
3.59%
|
| Analyst Consensus |
Strong Buy
|
Buy
|
Investment Thesis
Applied Materials is the world's leading semiconductor and display equipment company, and the May 14 Q2 fiscal 2026 print materially strengthened the operating story. Revenue grew 11 percent year over year to a record $7.91 billion, non-GAAP earnings per share of $2.86 beat consensus of $2.68, and management guided Q3 to a record $8.95 billion in revenue with non-GAAP earnings per share of $3.36 …
McDonald's Corporation operates a global quick-service restaurant business with a strong competitive moat driven by brand recognition, extensive franchising, and digital innovation. The company reported $26.9 billion in revenue for fiscal 2025, growing 4% year-over-year, with significant contributions from its International Operated Markets segment growing nearly 8%. Despite a high valuation regi…
Accumulation Zones
| Metric |
AMAT |
MCD |
| Zone Low |
$268.50 |
$245.72 |
| Zone High |
$304.30 |
$278.48 |
| In Buy Zone? |
No
|
Yes
|