MCD vs MSFT: Which Is the Better Buy?
Side-by-side comparison of McDonald's Corporation and Microsoft Corporation — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-05-09.
McDonald's Corporation · Consumer Cyclical
$275.75
+18.8% upside to fair value
Grade C
High Quality
VS
Microsoft Corporation · Technology
$429.25
-1.3% upside to fair value
Grade B
High Quality
QuantHub Verdict
MCD has more upside to fair value
(+18.8%).
MCD trades at a lower forward P/E
(22.6x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
MCD |
MSFT |
| Current Price |
$275.75 |
$429.25 |
| Fair Value Estimate |
$327.62 |
$423.82 |
| Upside to Fair Value |
+18.8%
|
-1.3%
|
| Market Cap |
$196.0B |
$3,187.4B |
| Forward P/E |
22.6x
|
26.8x
|
| EV / EBITDA |
16.7x
|
17.2x
|
| Price / Sales |
7.1x
|
10.4x
|
| Price / FCF |
27.9x
|
41.2x
|
| Revenue Growth YoY |
+9.4%
|
+16.7%
|
| Gross Margin |
57.4%
|
68.6%
|
| Operating Margin |
46.0%
|
46.7%
|
| Return on Equity |
-434.0%
|
33.6%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
3.59%
|
2.43%
|
| Analyst Consensus |
Buy
|
Strong Buy
|
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…
Microsoft Corporation is a leading technology company specializing in software infrastructure, cloud computing, and productivity solutions. The company benefits from a high-quality business model characterized by durable competitive moats including strong switching costs and intangible assets such as its brand and cloud infrastructure. Under CEO Satya Nadella's leadership since 2014, Microsoft ha…
Accumulation Zones
| Metric |
MCD |
MSFT |
| Zone Low |
$245.72 |
$317.87 |
| Zone High |
$278.48 |
$360.25 |
| In Buy Zone? |
Yes
|
No
|