HON vs MCD: Which Is the Better Buy?
Side-by-side comparison of Honeywell International Inc. and McDonald's Corporation — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-04-11.
Honeywell International Inc. · Industrials
$235.04
-9.9% upside to fair value
Med Conviction
Grade B
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%).
HON trades at a lower forward P/E
(22.3x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
HON |
MCD |
| Current Price |
$235.04 |
$305.68 |
| Fair Value Estimate |
$211.73 |
$320.00 |
| Upside to Fair Value |
-9.9%
|
+4.7%
|
| Market Cap |
$149.4B |
$218.1B |
| Forward P/E |
22.3x
|
24.5x
|
| EV / EBITDA |
16.9x
|
18.6x
|
| Price / Sales |
4.0x
|
8.1x
|
| Price / FCF |
27.7x
|
30.3x
|
| Revenue Growth YoY |
-2.7%
|
+3.7%
|
| Gross Margin |
36.9%
|
57.4%
|
| Operating Margin |
17.7%
|
46.1%
|
| Return on Equity |
33.28%
|
—
|
| Dividend Yield |
1.92% |
2.4% |
| FCF Yield |
3.61%
|
3.3%
|
| Analyst Consensus |
Buy
|
Buy
|
Investment Thesis
Honeywell is a diversified industrial conglomerate in the final stages of a transformative three-way separation into Honeywell Aerospace, Solstice Advanced Materials, and a retained Automation entity, targeting Q3 2026 completion. The business generated 33% ROE and $5.4B in free cash flow on $37.4B revenue in FY2025, supported by a record $37B backlog with 23% organic order growth in Q4. At $235 …
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 |
HON |
MCD |
| Zone Low |
$158.80 |
$240.00 |
| Zone High |
$179.97 |
$272.00 |
| In Buy Zone? |
No
|
No
|