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 2026-06-20.
McDonald's Corporation · Consumer Cyclical
$278.61
+18.7% upside to fair value
Grade B
High Quality
VS
Netflix, Inc. · Communication Services
$77.38
+45.0% upside to fair value
Grade B
High Quality
QuantHub Verdict
NFLX has more upside to fair value
(+45.0%).
MCD trades at a lower forward P/E
(22.9x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
MCD |
NFLX |
| Current Price |
$278.61 |
$77.38 |
| Fair Value Estimate |
$330.66 |
$112.20 |
| Upside to Fair Value |
+18.7%
|
+45.0%
|
| Market Cap |
$197.9B |
$325.8B |
| Forward P/E |
22.9x
|
24.5x
|
| EV / EBITDA |
16.9x
|
9.7x
|
| Price / Sales |
7.2x
|
7.0x
|
| Price / FCF |
28.1x
|
27.4x
|
| Revenue Growth YoY |
+9.4%
|
+16.2%
|
| Gross Margin |
57.4%
|
49.0%
|
| Operating Margin |
46.0%
|
29.7%
|
| Return on Equity |
-433.9%
|
49.2%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
3.56%
|
3.65%
|
| Analyst Consensus |
Buy
|
Strong Buy
|
Investment Thesis
McDonald's Corporation operates a high-margin, asset-light global quick-service restaurant business with a durable competitive moat supported by strong brand recognition and a wide global footprint. The company benefits from consistent mid-single-digit systemwide sales growth and high free cash flow conversion, enabling substantial dividends and share buybacks. Despite a premium valuation with a …
Netflix, Inc. operates a global streaming entertainment platform with a durable competitive moat driven by its massive scale, significant content investment, and advanced technology and data capabilities. The company benefits from strong revenue growth of 16.2% and earnings growth of 82.8% in the most recent quarter, supported by a subscriber base exceeding 300 million and expanding advertising r…
Accumulation Zones
| Metric |
MCD |
NFLX |
| Zone Low |
$248.00 |
$84.15 |
| Zone High |
$281.06 |
$95.37 |
| In Buy Zone? |
Yes
|
Yes
|