GE vs MCD: Which Is the Better Buy?

Side-by-side comparison of GE Aerospace and McDonald's Corporation β€” fair value, conviction, valuation metrics, and QuantHub research signals. Updated 2026-04-11.
GE Aerospace Β· Industrials
$308.35
-44.2% upside to fair value
Grade D High Quality
VS
McDonald's Corporation Β· 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 β€” not personalized investment advice. See all research β†’
Valuation & Fundamentals
Metric GE MCD
Current Price $308.35 $305.68
Fair Value Estimate $171.94 $320.00
Upside to Fair Value -44.2% +4.7%
Market Cap $325.2B $218.1B
Forward P/E 37.8x 24.5x
EV / EBITDA 27.9x 18.6x
Price / Sales 7.2x 8.1x
Price / FCF 45.2x 30.3x
Revenue Growth YoY +18.5% +3.7%
Gross Margin 36.8% 57.4%
Operating Margin 19.1% 46.1%
Return on Equity 46.6% β€”
Dividend Yield 0.44% 2.4%
FCF Yield 2.21% 3.3%
Analyst Consensus Strong Buy Buy
Investment Thesis
GE β€” GE Aerospace
GE Aerospace is the dominant pure-play aerospace engine company globally, operating through Commercial Engines and Services and Defense and Propulsion Technologies segments. The company delivered 18.5% revenue growth to $45.9 billion in 2025, driven by LEAP engine deliveries, a $190 billion backlog, and robust aftermarket services that generate majority profits. CEO Larry Culp has executed a rema…
MCD β€” McDonald's Corporation
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 GE MCD
Zone Low $128.96 $240.00
Zone High $146.15 $272.00
In Buy Zone? No No
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