MCD vs TSM: Which Is the Better Buy?
Side-by-side comparison of McDonald's Corporation and Taiwan Semiconductor Manufacturing Company Limited — 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
Taiwan Semiconductor Manufacturing Company Limited · Technology
$365.90
-3.8% upside to fair value
Med Conviction
Grade B+
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 |
TSM |
| Current Price |
$305.68 |
$365.90 |
| Fair Value Estimate |
$320.00 |
$352.00 |
| Upside to Fair Value |
+4.7%
|
-3.8%
|
| Market Cap |
$218.1B |
$1,897.7B |
| Forward P/E |
24.5x
|
26.0x
|
| EV / EBITDA |
18.6x
|
18.1x
|
| Price / Sales |
8.1x
|
13.3x
|
| Price / FCF |
30.3x
|
54.0x
|
| Revenue Growth YoY |
+3.7%
|
+33.0%
|
| Gross Margin |
57.4%
|
59.9%
|
| Operating Margin |
46.1%
|
50.8%
|
| Return on Equity |
—
|
35.1%
|
| Dividend Yield |
2.4% |
1.05% |
| FCF Yield |
3.3%
|
1.85%
|
| Analyst Consensus |
Buy
|
Strong 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…
TSMC remains the single most critical company in the global semiconductor supply chain, manufacturing virtually every leading-edge AI chip for NVIDIA, Apple, AMD, and the hyperscalers. The company delivered exceptional 2025 results with 33% revenue growth and 50% net income growth, driven by HPC surging to 55% of Q4 revenue. At the 3nm node, TSMC maintains production yields of 70-80% versus Samsu…
Accumulation Zones
| Metric |
MCD |
TSM |
| Zone Low |
$240.00 |
$265.00 |
| Zone High |
$272.00 |
$310.00 |
| In Buy Zone? |
No
|
No
|