ETN vs MCD: Which Is the Better Buy?
Side-by-side comparison of Eaton Corporation plc and McDonald's Corporation — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-08-06.
Eaton Corporation plc · Industrials
$447.28
-9.5% upside to fair value
Med Conviction
Grade C+
VS
McDonald's Corporation · Consumer Cyclical
$267.71
+20.6% upside to fair value
Med Conviction
Grade C+
High Quality
QuantHub Verdict
MCD has more upside to fair value
(+20.6%).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
ETN |
MCD |
| Current Price |
$447.28 |
$267.71 |
| Fair Value Estimate |
$405.00 |
$322.85 |
| Upside to Fair Value |
-9.5%
|
+20.6%
|
| Market Cap |
$173.7B |
$190.2B |
| Forward P/E |
33.2x
|
—
|
| EV / EBITDA |
30.0x
|
16.4x
|
| Price / Sales |
5.8x
|
6.9x
|
| Price / FCF |
38.6x
|
27.0x
|
| Revenue Growth YoY |
+21.0%
|
+9.4%
|
| Gross Margin |
35.9%
|
57.4%
|
| Operating Margin |
17.7%
|
46.0%
|
| Return on Equity |
18.9%
|
-433.9%
|
| Dividend Yield |
0.98% |
2.75% |
| FCF Yield |
2.59%
|
3.7%
|
| Analyst Consensus |
Buy
|
Buy
|
Investment Thesis
Eaton is a 115-year-old power management company whose Electrical Americas, Electrical Global and Aerospace segments have become a core beneficiary of the same AI data-center, grid modernization and reshoring supercycle driving GE Vernova and Vertiv. Q2 2026 results were record-setting: revenue of $8.5 billion (up 21% year over year, 14% organic), adjusted EPS of $3.15, and segment margins of 23.…
McDonald's is a global quick-service restaurant franchisor and real-estate platform whose approximately 95% franchised restaurant base generates unusually high-margin, recurring royalty and rent income, supporting a 46.0% operating margin and 31.6% net margin. Business quality is high because its brand, global purchasing scale, nearly 29,000 drive-thrus, digital ecosystem and 210 million 90-day a…
Accumulation Zones
| Metric |
ETN |
MCD |
| Zone Low |
$305.00 |
$242.14 |
| Zone High |
$345.00 |
$274.42 |
| In Buy Zone? |
No
|
Yes
|