KO vs MCD: Which Is the Better Buy?
Side-by-side comparison of The Coca-Cola Company and McDonald's Corporation — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-09-16.
The Coca-Cola Company · Consumer Defensive
$88.71
+15.5% upside to fair value
Med Conviction
Grade C
High Quality
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 |
KO |
MCD |
| Current Price |
$88.71 |
$252.78 |
| Fair Value Estimate |
$102.44 |
$355.71 |
| Upside to Fair Value |
+15.5%
|
+40.7%
|
| Market Cap |
$381.7B |
$179.6B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
20.8x
|
15.5x
|
| Price / Sales |
7.6x
|
6.5x
|
| Price / FCF |
26.7x
|
23.1x
|
| Revenue Growth YoY |
+6.7%
|
+3.8%
|
| Gross Margin |
61.9%
|
57.4%
|
| Operating Margin |
29.6%
|
45.8%
|
| Return on Equity |
43.0%
|
-561.2%
|
| Dividend Yield |
2.37% |
2.94% |
| FCF Yield |
3.75%
|
4.32%
|
| Analyst Consensus |
Strong Buy
|
Buy
|
Investment Thesis
The Coca-Cola Company is a global non-alcoholic beverage concentrate, brand-management and bottling-system business with products sold in more than 200 countries and territories, supported by powerful trademarks, 2.2 billion daily servings and an entrenched distribution network. Business quality is high: TTM gross, operating and net margins are 61.9%, 29.6% and 28.6%, respectively, ROE is 43.0%, …
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 |
KO |
MCD |
| Zone Low |
$76.83 |
$266.78 |
| Zone High |
$87.07 |
$302.35 |
| In Buy Zone? |
No
|
Yes
|