MCD vs MS: Which Is the Better Buy?
Side-by-side comparison of McDonald's Corporation and Morgan Stanley — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-07-20.
McDonald's Corporation · Consumer Cyclical
$267.71
+20.6% upside to fair value
Med Conviction
Grade C+
High Quality
VS
Morgan Stanley · Financial Services
$218.37
+45.0% upside to fair value
Grade B
High Quality
QuantHub Verdict
MS has more upside to fair value
(+45.0%).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
MCD |
MS |
| Current Price |
$267.71 |
$218.37 |
| Fair Value Estimate |
$322.85 |
$316.64 |
| Upside to Fair Value |
+20.6%
|
+45.0%
|
| Market Cap |
$190.2B |
$344.4B |
| Forward P/E |
—
|
23.6x
|
| EV / EBITDA |
16.4x
|
9.8x
|
| Price / Sales |
6.9x
|
2.7x
|
| Price / FCF |
27.0x
|
-327.4x
|
| Revenue Growth YoY |
+9.4%
|
+22.4%
|
| Gross Margin |
57.4%
|
56.6%
|
| Operating Margin |
46.0%
|
28.4%
|
| Return on Equity |
-433.9%
|
23.4%
|
| Dividend Yield |
2.75% |
0% |
| FCF Yield |
3.7%
|
—
|
| Analyst Consensus |
Buy
|
Hold
|
Investment Thesis
McDonald's is a global quick-service restaurant franchisor and real-estate platform whose approximately 95% franchised restaurant base generates unusually high-margin, recurring royalty and rent income, supporting a 46.0% operating margin and 31.6% net margin. Business quality is high because its brand, global purchasing scale, nearly 29,000 drive-thrus, digital ecosystem and 210 million 90-day a…
Morgan Stanley is a leading global financial services firm specializing in capital markets, wealth management, and investment banking. The company demonstrates high business quality with a strong return on equity of 23.4% and robust revenue growth of 22.4% in the most recent quarter, alongside impressive earnings growth of 57.7% in the same period. Its gross margin of 56.6% and net margin of 20.2…
Accumulation Zones
| Metric |
MCD |
MS |
| Zone Low |
$242.14 |
$237.48 |
| Zone High |
$274.42 |
$269.14 |
| In Buy Zone? |
Yes
|
Yes
|