DE vs MCD: Which Is the Better Buy?
Side-by-side comparison of Deere & Company and McDonald's Corporation — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-05-04.
Deere & Company · Industrials
$578.39
+22.4% upside to fair value
Grade C
VS
McDonald's Corporation · Consumer Cyclical
$305.68
+4.7% upside to fair value
Med Conviction
Grade B
QuantHub Verdict
DE has more upside to fair value
(+22.4%).
MCD trades at a lower forward P/E
(24.5x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
DE |
MCD |
| Current Price |
$578.39 |
$305.68 |
| Fair Value Estimate |
$708.19 |
$320.00 |
| Upside to Fair Value |
+22.4%
|
+4.7%
|
| Market Cap |
$156.2B |
$218.1B |
| Forward P/E |
32.5x
|
24.5x
|
| EV / EBITDA |
18.4x
|
18.6x
|
| Price / Sales |
3.4x
|
8.1x
|
| Price / FCF |
43.7x
|
30.3x
|
| Revenue Growth YoY |
+16.3%
|
+3.7%
|
| Gross Margin |
35.6%
|
57.4%
|
| Operating Margin |
18.5%
|
46.1%
|
| Return on Equity |
18.9%
|
—
|
| Dividend Yield |
0% |
2.4% |
| FCF Yield |
2.29%
|
3.3%
|
| Analyst Consensus |
Buy
|
Buy
|
Investment Thesis
Deere & Company is a leading manufacturer of agricultural, construction, and forestry machinery, with a strong position in production and precision agriculture, small agriculture and turf, and construction and forestry segments. The company benefits from a durable competitive moat driven by its brand, intangible assets, and switching costs, supported by a CEO with deep institutional knowledge and…
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 |
DE |
MCD |
| Zone Low |
$531.14 |
$240.00 |
| Zone High |
$601.96 |
$272.00 |
| In Buy Zone? |
Yes
|
No
|