BAC vs MCD: Which Is the Better Buy?
Side-by-side comparison of Bank of America Corporation and McDonald's Corporation — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-04-11.
Bank of America Corporation · Financial Services
$52.54
+7.3% upside to fair value
Grade B+
VS
McDonald's Corporation · Consumer Cyclical
$305.68
+4.7% upside to fair value
Med Conviction
Grade B
QuantHub Verdict
BAC has more upside to fair value
(+7.3%).
BAC trades at a lower forward P/E
(12.1x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
BAC |
MCD |
| Current Price |
$52.54 |
$305.68 |
| Fair Value Estimate |
$56.39 |
$320.00 |
| Upside to Fair Value |
+7.3%
|
+4.7%
|
| Market Cap |
$377.1B |
$218.1B |
| Forward P/E |
12.1x
|
24.5x
|
| EV / EBITDA |
12.8x
|
18.6x
|
| Price / Sales |
2.0x
|
8.1x
|
| Price / FCF |
29.9x
|
30.3x
|
| Revenue Growth YoY |
-0.5%
|
+3.7%
|
| Gross Margin |
56.1%
|
57.4%
|
| Operating Margin |
19.7%
|
46.1%
|
| Return on Equity |
10.1%
|
—
|
| Dividend Yield |
2.09% |
2.4% |
| FCF Yield |
3.35%
|
3.3%
|
| Analyst Consensus |
Buy
|
Buy
|
Investment Thesis
Bank of America is a top-two U.S. bank by assets with $3.4 trillion on its balance sheet, generating $30.5 billion in net income in 2025 on the back of 12.5% earnings growth. The bank benefits from scale in consumer deposits, a recovering investment banking franchise, and an expanding digital platform serving 47 million active users. At 12.7x trailing earnings and 1.97x sales, BAC trades at a fai…
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 |
BAC |
MCD |
| Zone Low |
$42.29 |
$240.00 |
| Zone High |
$47.93 |
$272.00 |
| In Buy Zone? |
No
|
No
|