AVGO vs MCD: Which Is the Better Buy?

Side-by-side comparison of Broadcom Inc. and McDonald's Corporation β€” fair value, conviction, valuation metrics, and QuantHub research signals. Updated 2026-05-09.
Broadcom Inc. Β· Technology
$371.59
-45.0% upside to fair value
Grade C High Quality
VS
McDonald's Corporation Β· 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 β€” not personalized investment advice. See all research β†’
Valuation & Fundamentals
Metric AVGO MCD
Current Price $371.59 $275.75
Fair Value Estimate $204.37 $327.62
Upside to Fair Value -45.0% +18.8%
Market Cap $1,761.8B $196.0B
Forward P/E 70.7x 22.6x
EV / EBITDA 46.7x 16.7x
Price / Sales 25.9x 7.1x
Price / FCF 61.1x 27.9x
Revenue Growth YoY +7.2% +9.4%
Gross Margin 67.1% 57.4%
Operating Margin 40.9% 46.0%
Return on Equity 32.9% -434.0%
Dividend Yield 0% 0%
FCF Yield 1.64% 3.59%
Analyst Consensus Strong Buy Buy
Investment Thesis
AVGO β€” Broadcom Inc.
Broadcom Inc. is a leading technology company specializing in semiconductors and infrastructure software, with a strong competitive moat driven by scale, diversification, and aggressive M&A under CEO Hock E. Tan. The company has demonstrated robust revenue growth, particularly in semiconductor solutions and infrastructure software segments, with a 25% year-over-year increase recently and a five-y…
MCD β€” McDonald's Corporation
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 AVGO MCD
Zone Low $153.28 $245.72
Zone High $173.71 $278.48
In Buy Zone? No Yes
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