GOOGL vs MCD: Which Is the Better Buy?
Side-by-side comparison of Alphabet Inc. and McDonald's Corporation — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-04-11.
Alphabet Inc. · Communication Services
$317.41
-4.5% upside to fair value
Grade D
High Quality
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.
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Valuation & Fundamentals
| Metric |
GOOGL |
MCD |
| Current Price |
$317.41 |
$305.68 |
| Fair Value Estimate |
$303.05 |
$320.00 |
| Upside to Fair Value |
-4.5%
|
+4.7%
|
| Market Cap |
$3,839.7B |
$218.1B |
| Forward P/E |
29.0x
|
24.5x
|
| EV / EBITDA |
21.5x
|
18.6x
|
| Price / Sales |
9.5x
|
8.1x
|
| Price / FCF |
52.4x
|
30.3x
|
| Revenue Growth YoY |
+11.3%
|
+3.7%
|
| Gross Margin |
59.7%
|
57.4%
|
| Operating Margin |
32.0%
|
46.1%
|
| Return on Equity |
35.0%
|
—
|
| Dividend Yield |
0% |
2.4% |
| FCF Yield |
1.91%
|
3.3%
|
| Analyst Consensus |
Strong Buy
|
Buy
|
Investment Thesis
Alphabet Inc. operates as a global leader in internet content and information services, primarily through its dominant search engine, advertising platforms, and cloud computing services. The company benefits from durable competitive moats including browser and mobile OS dominance, strong brand recognition, and advanced AI infrastructure investments. Despite strong revenue growth of 11.3% year-ove…
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 |
GOOGL |
MCD |
| Zone Low |
$227.29 |
$240.00 |
| Zone High |
$257.59 |
$272.00 |
| In Buy Zone? |
No
|
No
|