MCD vs RTX: Which Is the Better Buy?
Side-by-side comparison of McDonald's Corporation and RTX Corporation — 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
RTX Corporation · Industrials
$172.90
-21.3% upside to fair value
Grade D
QuantHub Verdict
MCD has more upside to fair value
(+4.7%).
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 |
RTX |
| Current Price |
$305.68 |
$172.90 |
| Fair Value Estimate |
$320.00 |
$136.05 |
| Upside to Fair Value |
+4.7%
|
-21.3%
|
| Market Cap |
$218.1B |
$232.8B |
| Forward P/E |
24.5x
|
32.1x
|
| EV / EBITDA |
18.6x
|
19.2x
|
| Price / Sales |
8.1x
|
2.6x
|
| Price / FCF |
30.3x
|
27.9x
|
| Revenue Growth YoY |
+3.7%
|
+8.7%
|
| Gross Margin |
57.4%
|
20.2%
|
| Operating Margin |
46.1%
|
10.4%
|
| Return on Equity |
—
|
11.2%
|
| Dividend Yield |
2.4% |
0% |
| FCF Yield |
3.3%
|
3.59%
|
| 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…
RTX Corporation is a leading aerospace and defense company with a diversified portfolio spanning Pratt & Whitney jet engines, Collins Aerospace avionics, and Raytheon Intelligence & Space defense systems. The company benefits from a strong competitive moat supported by a $271 billion backlog and multi-year contracts, driving consistent revenue growth of 10% in 2025 and 9% in Q1 2026. Earnings gro…
Accumulation Zones
| Metric |
MCD |
RTX |
| Zone Low |
$240.00 |
$102.04 |
| Zone High |
$272.00 |
$115.64 |
| In Buy Zone? |
No
|
No
|