AMZN vs MCD: Which Is the Better Buy?
Side-by-side comparison of Amazon.com, Inc. and McDonald's Corporation — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-07-20.
Amazon.com, Inc. · Consumer Cyclical
$242.67
+22.0% upside to fair value
Grade B
High Quality
VS
McDonald's Corporation · Consumer Cyclical
$267.71
+20.6% upside to fair value
Med Conviction
Grade C+
High Quality
QuantHub Verdict
AMZN has more upside to fair value
(+22.0%).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
AMZN |
MCD |
| Current Price |
$242.67 |
$267.71 |
| Fair Value Estimate |
$295.95 |
$322.85 |
| Upside to Fair Value |
+22.0%
|
+20.6%
|
| Market Cap |
$2,610.4B |
$190.2B |
| Forward P/E |
28.7x
|
—
|
| EV / EBITDA |
14.4x
|
16.4x
|
| Price / Sales |
3.5x
|
6.9x
|
| Price / FCF |
-1056.0x
|
27.0x
|
| Revenue Growth YoY |
+16.6%
|
+9.4%
|
| Gross Margin |
50.6%
|
57.4%
|
| Operating Margin |
11.5%
|
46.0%
|
| Return on Equity |
23.3%
|
-433.9%
|
| Dividend Yield |
0% |
2.75% |
| FCF Yield |
—
|
3.7%
|
| Analyst Consensus |
Strong Buy
|
Buy
|
Investment Thesis
Amazon.com, Inc. operates a diversified platform with core engines in retail, AWS cloud services, and advertising, leveraging a strong competitive moat driven by scale, logistics, and technology leadership. The company exhibits high business quality with 23.3% ROE, 16.6% revenue growth, and 76.7% earnings growth in the most recent quarter, supported by a widening moat in e-commerce and cloud. Des…
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 |
AMZN |
MCD |
| Zone Low |
$221.96 |
$242.14 |
| Zone High |
$251.56 |
$274.42 |
| In Buy Zone? |
Yes
|
Yes
|