MCD vs NFLX: Which Is the Better Buy?
Side-by-side comparison of McDonald's Corporation and Netflix, Inc. — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-09-17.
McDonald's Corporation · Consumer Cyclical
$252.78
+40.7% upside to fair value
Med Conviction
Grade A
High Quality
VS
Netflix, Inc. · Communication Services
$76.41
+44.0% upside to fair value
High Conviction
Grade A
High Quality
QuantHub Verdict
NFLX has more upside to fair value
(+44.0%).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
MCD |
NFLX |
| Current Price |
$252.78 |
$76.41 |
| Fair Value Estimate |
$355.71 |
$110.00 |
| Upside to Fair Value |
+40.7%
|
+44.0%
|
| Market Cap |
$179.6B |
$318.2B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
15.5x
|
10.6x
|
| Price / Sales |
6.5x
|
6.6x
|
| Price / FCF |
23.1x
|
29.1x
|
| Revenue Growth YoY |
+3.8%
|
+13.4%
|
| Gross Margin |
57.4%
|
49.1%
|
| Operating Margin |
45.8%
|
29.7%
|
| Return on Equity |
-561.2%
|
48.0%
|
| Dividend Yield |
2.94% |
0% |
| FCF Yield |
4.32%
|
3.44%
|
| Analyst Consensus |
Buy
|
Strong Buy
|
Investment Thesis
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…
Netflix is a global subscription and advertising-supported entertainment platform with a high-quality brand, content engine, recommendation technology and distribution scale, evidenced by more than 97 billion viewing hours in the first half of 2026 and an audience approaching one billion people. Fundamentals remain strong: revenue grew 13.4% year over year in the most recent quarter, TTM gross, o…
Accumulation Zones
| Metric |
MCD |
NFLX |
| Zone Low |
$266.78 |
$82.50 |
| Zone High |
$302.35 |
$93.50 |
| In Buy Zone? |
Yes
|
Yes
|