MCD vs MRK: Which Is the Better Buy?
Side-by-side comparison of McDonald's Corporation and Merck & Co., Inc. — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-05-20.
McDonald's Corporation · Consumer Cyclical
$275.75
+18.8% upside to fair value
Grade C
High Quality
VS
Merck & Co., Inc. · Healthcare
$114.27
+3.3% upside to fair value
Grade C
High Quality
QuantHub Verdict
MCD has more upside to fair value
(+18.8%).
MRK trades at a lower forward P/E
(22.4x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
MCD |
MRK |
| Current Price |
$275.75 |
$114.27 |
| Fair Value Estimate |
$327.62 |
$118.00 |
| Upside to Fair Value |
+18.8%
|
+3.3%
|
| Market Cap |
$196.0B |
$282.2B |
| Forward P/E |
22.6x
|
22.4x
|
| EV / EBITDA |
16.7x
|
13.5x
|
| Price / Sales |
7.1x
|
4.3x
|
| Price / FCF |
27.9x
|
20.2x
|
| Revenue Growth YoY |
+9.4%
|
+5.0%
|
| Gross Margin |
57.4%
|
81.9%
|
| Operating Margin |
46.0%
|
27.5%
|
| Return on Equity |
-434.0%
|
5.6%
|
| Dividend Yield |
0% |
2.91% |
| FCF Yield |
3.59%
|
4.95%
|
| Analyst Consensus |
Buy
|
Overweight
|
Investment Thesis
McDonald's Corporation operates a global quick-service restaurant business with a strong competitive moat driven by brand recognition, extensive franchising, and digital innovation. The company reported $26.9 billion in revenue for fiscal 2025, growing 4% year-over-year, with significant contributions from its International Operated Markets segment growing nearly 8%. Despite a high valuation regi…
Merck delivered a clean Q1 2026 operational beat on April 30, with revenue of 16.3 billion dollars growing 5 percent year over year and Keytruda sales rising 12 percent to 8.0 billion dollars. The reported loss of 1.28 dollars per share, though better than the negative 1.47 dollar consensus estimate, reflected a 3.62 dollar per share IPR and D charge tied to the Cidara Therapeutics acquisition an…
Accumulation Zones
| Metric |
MCD |
MRK |
| Zone Low |
$245.72 |
$88.50 |
| Zone High |
$278.48 |
$100.30 |
| In Buy Zone? |
Yes
|
No
|