CAT vs MCD: Which Is the Better Buy?
Side-by-side comparison of Caterpillar Inc. and McDonald's Corporation — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-04-11.
Caterpillar Inc. · Industrials
$792.65
-8.8% upside to fair value
Grade D
VS
McDonald's Corporation · Consumer Cyclical
$305.68
+4.7% upside to fair value
Med Conviction
Grade B
QuantHub Verdict
MCD has more upside to fair value
(+4.7%).
MCD trades at a lower forward P/E
(24.5x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
CAT |
MCD |
| Current Price |
$792.65 |
$305.68 |
| Fair Value Estimate |
$723.13 |
$320.00 |
| Upside to Fair Value |
-8.8%
|
+4.7%
|
| Market Cap |
$370.9B |
$218.1B |
| Forward P/E |
41.7x
|
24.5x
|
| EV / EBITDA |
27.2x
|
18.6x
|
| Price / Sales |
5.5x
|
8.1x
|
| Price / FCF |
36.1x
|
30.3x
|
| Revenue Growth YoY |
+8.5%
|
+3.7%
|
| Gross Margin |
32.3%
|
57.4%
|
| Operating Margin |
16.6%
|
46.1%
|
| Return on Equity |
45.1%
|
—
|
| Dividend Yield |
0% |
2.4% |
| FCF Yield |
2.77%
|
3.3%
|
| Analyst Consensus |
Buy
|
Buy
|
Investment Thesis
Caterpillar Inc. is the world's leading manufacturer of construction and mining equipment, engines, and industrial machinery, with a strong global footprint and a record $67.6 billion in revenues for 2025. The company benefits from a durable competitive position supported by a broad product portfolio and a large installed base, but faces margin pressure from tariffs and cost inflation. Despite so…
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 |
CAT |
MCD |
| Zone Low |
$542.35 |
$240.00 |
| Zone High |
$614.66 |
$272.00 |
| In Buy Zone? |
No
|
No
|