MCD vs PG: Which Is the Better Buy?
Side-by-side comparison of McDonald's Corporation and The Procter & Gamble Company — 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
The Procter & Gamble Company · Consumer Defensive
$143.45
+13.8% upside to fair value
Grade B
High Quality
QuantHub Verdict
PG has more upside to fair value
(+13.8%).
PG trades at a lower forward P/E
(20.8x).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
MCD |
PG |
| Current Price |
$305.68 |
$143.45 |
| Fair Value Estimate |
$320.00 |
$163.27 |
| Upside to Fair Value |
+4.7%
|
+13.8%
|
| Market Cap |
$218.1B |
$334.0B |
| Forward P/E |
24.5x
|
20.8x
|
| EV / EBITDA |
18.6x
|
15.4x
|
| Price / Sales |
8.1x
|
3.9x
|
| Price / FCF |
30.3x
|
22.2x
|
| Revenue Growth YoY |
+3.7%
|
+7.4%
|
| Gross Margin |
57.4%
|
50.3%
|
| Operating Margin |
46.1%
|
23.2%
|
| Return on Equity |
—
|
31.3%
|
| Dividend Yield |
2.4% |
0% |
| FCF Yield |
3.3%
|
4.5%
|
| Analyst Consensus |
Buy
|
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…
The Procter & Gamble Company is a leading consumer defensive firm specializing in household and personal products with a diversified portfolio across fabric and home care, baby and family care, beauty, health care, and grooming segments. The business quality is high, supported by durable brands, strong margins with a 50.3% gross margin and 19.2% net margin, and consistent earnings growth evidence…
Accumulation Zones
| Metric |
MCD |
PG |
| Zone Low |
$240.00 |
$122.45 |
| Zone High |
$272.00 |
$138.78 |
| In Buy Zone? |
No
|
No
|