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 2026-05-13.
Caterpillar Inc. · Industrials
$912.14
-47.9% upside to fair value
Grade D
High Quality
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%).
MCD trades at a lower forward P/E
(22.6x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
CAT |
MCD |
| Current Price |
$912.14 |
$275.75 |
| Fair Value Estimate |
$475.00 |
$327.62 |
| Upside to Fair Value |
-47.9%
|
+18.8%
|
| Market Cap |
$420.2B |
$196.0B |
| Forward P/E |
44.9x
|
22.6x
|
| EV / EBITDA |
30.0x
|
16.7x
|
| Price / Sales |
5.9x
|
7.1x
|
| Price / FCF |
36.7x
|
27.9x
|
| Revenue Growth YoY |
+22.2%
|
+9.4%
|
| Gross Margin |
32.5%
|
57.4%
|
| Operating Margin |
16.6%
|
46.0%
|
| Return on Equity |
47.5%
|
-434.0%
|
| Dividend Yield |
1.5% |
0% |
| FCF Yield |
2.73%
|
3.59%
|
| Analyst Consensus |
Hold
|
Buy
|
Investment Thesis
Caterpillar is the world's leading manufacturer of construction and mining equipment, with diversified revenue across Construction Industries, Resource Industries, Energy & Transportation, and Cat Financial. Q1 2026 results reported April 30 showed revenue of $17.4 billion (+22.2% YoY) and EPS of $5.50 (+30.3% YoY), driven by powerful demand from data center build-outs (large engine and power gen…
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 |
CAT |
MCD |
| Zone Low |
$356.00 |
$245.72 |
| Zone High |
$404.00 |
$278.48 |
| In Buy Zone? |
No
|
Yes
|