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 2026-05-09.
Bank of America Corporation · Financial Services
$53.95
-41.2% upside to fair value
Grade C
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%).
BAC trades at a lower forward P/E
(12.3x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
BAC |
MCD |
| Current Price |
$53.95 |
$275.75 |
| Fair Value Estimate |
$31.74 |
$327.62 |
| Upside to Fair Value |
-41.2%
|
+18.8%
|
| Market Cap |
$387.2B |
$196.0B |
| Forward P/E |
12.3x
|
22.6x
|
| EV / EBITDA |
12.7x
|
16.7x
|
| Price / Sales |
2.2x
|
7.1x
|
| Price / FCF |
30.7x
|
27.9x
|
| Revenue Growth YoY |
-35.6%
|
+9.4%
|
| Gross Margin |
63.2%
|
57.4%
|
| Operating Margin |
22.9%
|
46.0%
|
| Return on Equity |
10.5%
|
-434.0%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
3.26%
|
3.59%
|
| Analyst Consensus |
Strong Buy
|
Buy
|
Investment Thesis
Bank of America Corporation is a leading diversified bank with $3.41 trillion in assets and a broad footprint across consumer banking, global markets, wealth management, and corporate banking. The company benefits from a strong market position and experienced leadership under CEO Brian T. Moynihan. However, the stock is currently overvalued, trading approximately 36% above its fair value estimate…
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 |
BAC |
MCD |
| Zone Low |
$23.80 |
$245.72 |
| Zone High |
$26.98 |
$278.48 |
| In Buy Zone? |
No
|
Yes
|