MCD vs TSLA: Which Is the Better Buy?
Side-by-side comparison of McDonald's Corporation and Tesla, Inc. — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-04-11.
McDonald's Corporation · Consumer Cyclical
$305.68
+4.7% upside to fair value
Med Conviction
Grade B
VS
Tesla, Inc. · Consumer Cyclical
$343.23
-5.3% upside to fair value
Low Conviction
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 |
TSLA |
| Current Price |
$305.68 |
$343.23 |
| Fair Value Estimate |
$320.00 |
$325.00 |
| Upside to Fair Value |
+4.7%
|
-5.3%
|
| Market Cap |
$218.1B |
$1,287.9B |
| Forward P/E |
24.5x
|
205.5x
|
| EV / EBITDA |
18.6x
|
108.8x
|
| Price / Sales |
8.1x
|
13.6x
|
| Price / FCF |
30.3x
|
207.1x
|
| Revenue Growth YoY |
+3.7%
|
-2.9%
|
| Gross Margin |
57.4%
|
18.0%
|
| Operating Margin |
46.1%
|
4.6%
|
| Return on Equity |
—
|
4.8%
|
| Dividend Yield |
2.4% |
0% |
| FCF Yield |
3.3%
|
0.48%
|
| Analyst Consensus |
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…
Tesla remains the most polarizing stock in markets. The core auto business is deteriorating: FY2025 revenue fell 2.9% to $94.8B, net income dropped 46.8% to $3.8B, and Q4 deliveries declined 15.6% YoY to 418K units. Yet the stock trades at 13.6x TTM P/S (near 5yr highs) on the optionality of Cybercab robotaxis launching April 2026, FSD reaching unsupervised status in Austin, and Optimus humanoid …
Accumulation Zones
| Metric |
MCD |
TSLA |
| Zone Low |
$240.00 |
$244.00 |
| Zone High |
$272.00 |
$276.00 |
| In Buy Zone? |
No
|
No
|