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 2026-05-04.
McDonald's Corporation · Consumer Cyclical
$305.68
+4.7% upside to fair value
Med Conviction
Grade B
VS
Netflix, Inc. · Communication Services
$91.02
+95.7% upside to fair value
Grade B
High Quality
QuantHub Verdict
NFLX has more upside to fair value
(+95.7%).
MCD trades at a lower forward P/E
(24.5x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
MCD |
NFLX |
| Current Price |
$305.68 |
$91.02 |
| Fair Value Estimate |
$320.00 |
$178.10 |
| Upside to Fair Value |
+4.7%
|
+95.7%
|
| Market Cap |
$218.1B |
$383.3B |
| Forward P/E |
24.5x
|
28.7x
|
| EV / EBITDA |
18.6x
|
11.4x
|
| Price / Sales |
8.1x
|
8.2x
|
| Price / FCF |
30.3x
|
32.2x
|
| Revenue Growth YoY |
+3.7%
|
+16.2%
|
| Gross Margin |
57.4%
|
49.0%
|
| Operating Margin |
46.1%
|
29.7%
|
| Return on Equity |
—
|
49.2%
|
| Dividend Yield |
2.4% |
0% |
| FCF Yield |
3.3%
|
3.1%
|
| Analyst Consensus |
Buy
|
Strong Buy
|
Investment Thesis
McDonald's operates the world's largest quick-service restaurant franchise with over 40,000 locations across 100+ countries, generating $26.9B in FY2025 revenue with roughly 60% from franchised operations. The asset-light franchise model produces 46% operating margins and $7.2B in annual free cash flow. Revenue growth reaccelerated modestly to 3.7% in FY2025 from 1.7% in FY2024, driven by the Int…
Netflix, Inc. operates a leading global streaming entertainment service with a dominant streaming segment accounting for nearly 100% of its revenue. The company benefits from a high-quality business model characterized by strong revenue growth of 16.2% and earnings growth of 82.8% in the most recent quarter, a robust 49.2% return on equity, and healthy margins with a 29.7% operating margin and 28…
Accumulation Zones
| Metric |
MCD |
NFLX |
| Zone Low |
$240.00 |
$133.57 |
| Zone High |
$272.00 |
$151.38 |
| In Buy Zone? |
No
|
Yes
|