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 2026-09-26.
Honeywell International Inc. · Industrials
$212.55
-8.5% upside to fair value
Med Conviction
Grade C
VS
McDonald's Corporation · Consumer Cyclical
$252.78
+40.7% upside to fair value
Med Conviction
Grade A
High Quality
QuantHub Verdict
MCD has more upside to fair value
(+40.7%).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
HON |
MCD |
| Current Price |
$212.55 |
$252.78 |
| Fair Value Estimate |
$194.50 |
$355.71 |
| Upside to Fair Value |
-8.5%
|
+40.7%
|
| Market Cap |
$67.4B |
$179.6B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
7.4x
|
15.5x
|
| Price / Sales |
1.9x
|
6.5x
|
| Price / FCF |
16.4x
|
23.1x
|
| Revenue Growth YoY |
-6.1%
|
+3.8%
|
| Gross Margin |
36.6%
|
57.4%
|
| Operating Margin |
14.1%
|
45.8%
|
| Return on Equity |
41.7%
|
-561.2%
|
| Dividend Yield |
2.09% |
2.94% |
| FCF Yield |
6.11%
|
4.32%
|
| Analyst Consensus |
Buy
|
Buy
|
Investment Thesis
Honeywell International Inc. is a 101,000-employee diversified industrial technology and manufacturing conglomerate, led by CEO Vimal Kapur, spanning Aerospace, Building Technologies, Performance Materials and Technologies, and Safety and Productivity Solutions. Business quality is solid but not exceptional: the company carries a durable intangible-asset and switching-cost moat in aerospace avion…
McDonald's operates a globally scaled, approximately 95% franchised restaurant system with 46,028 restaurants in more than 100 countries, combining a powerful consumer brand, real-estate-backed franchise economics, supplier scale and digital loyalty reach. Business quality is high despite meaningful leverage: TTM gross, operating and net margins are 57.4%, 45.8% and 31.7%, respectively, while loy…
Accumulation Zones
| Metric |
HON |
MCD |
| Zone Low |
$145.88 |
$266.78 |
| Zone High |
$165.32 |
$302.35 |
| In Buy Zone? |
No
|
Yes
|