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 2026-05-09.
McDonald's Corporation · Consumer Cyclical
$275.75
+18.8% upside to fair value
Grade C
High Quality
VS
Tesla, Inc. · Consumer Cyclical
$387.51
-45.0% upside to fair value
Grade D
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 |
TSLA |
| Current Price |
$275.75 |
$387.51 |
| Fair Value Estimate |
$327.62 |
$213.13 |
| Upside to Fair Value |
+18.8%
|
-45.0%
|
| Market Cap |
$196.0B |
$1,454.1B |
| Forward P/E |
22.6x
|
330.0x
|
| EV / EBITDA |
16.7x
|
122.9x
|
| Price / Sales |
7.1x
|
15.3x
|
| Price / FCF |
27.9x
|
233.8x
|
| Revenue Growth YoY |
+9.4%
|
-3.1%
|
| Gross Margin |
57.4%
|
18.0%
|
| Operating Margin |
46.0%
|
4.6%
|
| Return on Equity |
-434.0%
|
4.8%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
3.59%
|
0.43%
|
| Analyst Consensus |
Buy
|
Hold
|
Investment Thesis
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…
Tesla, Inc. is a leading global manufacturer of electric vehicles, energy storage, and solar products, led by CEO Elon Musk since 2008. The company has a mixed business quality profile with a strong brand and innovation leadership but faces significant challenges including declining automotive revenue, which fell nearly 10% year-over-year in 2025, and a 3.1% revenue decline in the most recent qua…
Accumulation Zones
| Metric |
MCD |
TSLA |
| Zone Low |
$245.72 |
$159.85 |
| Zone High |
$278.48 |
$181.16 |
| In Buy Zone? |
Yes
|
No
|