MCD vs PANW: Which Is the Better Buy?

Side-by-side comparison of McDonald's Corporation and Palo Alto Networks, Inc. — 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
Palo Alto Networks, Inc. · Technology
$174.41
-0.1% 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 PANW
Current Price $275.75 $174.41
Fair Value Estimate $327.62 $174.18
Upside to Fair Value +18.8% -0.1%
Market Cap $196.0B $118.9B
Forward P/E 22.6x 94.6x
EV / EBITDA 16.7x 52.3x
Price / Sales 7.1x 12.0x
Price / FCF 27.9x 29.2x
Revenue Growth YoY +9.4% +14.9%
Gross Margin 57.4% 73.5%
Operating Margin 46.0% 14.4%
Return on Equity -434.0% 15.5%
Dividend Yield 0% 0%
FCF Yield 3.59% 3.42%
Analyst Consensus Buy Strong Buy
Investment Thesis
MCD — McDonald's Corporation
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…
PANW — Palo Alto Networks, Inc.
Palo Alto Networks, Inc. is a leading global cybersecurity company specializing in AI-driven security platforms with a strong recurring revenue base exceeding 80% of total revenue. The company benefits from a high gross margin of 73.5% and solid profitability with a net margin of 13.0%, supported by accelerating revenue growth of 14.9% and earnings growth of 61.6% in the most recent quarter. Unde…
Accumulation Zones
Metric MCD PANW
Zone Low $245.72 $130.63
Zone High $278.48 $148.05
In Buy Zone? Yes No
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