MCD vs WFC: Which Is the Better Buy?
Side-by-side comparison of McDonald's Corporation and Wells Fargo & Company — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-07-20.
McDonald's Corporation · Consumer Cyclical
$267.71
+20.6% upside to fair value
Med Conviction
Grade C+
High Quality
VS
Wells Fargo & Company · Financial Services
$87.53
+18.1% upside to fair value
Med Conviction
Grade B
High Quality
QuantHub Verdict
MCD has more upside to fair value
(+20.6%).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
MCD |
WFC |
| Current Price |
$267.71 |
$87.53 |
| Fair Value Estimate |
$322.85 |
$103.38 |
| Upside to Fair Value |
+20.6%
|
+18.1%
|
| Market Cap |
$190.2B |
$267.8B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
16.4x
|
15.8x
|
| Price / Sales |
6.9x
|
2.1x
|
| Price / FCF |
27.0x
|
226.4x
|
| Revenue Growth YoY |
+9.4%
|
+11.3%
|
| Gross Margin |
57.4%
|
64.5%
|
| Operating Margin |
46.0%
|
21.2%
|
| Return on Equity |
-433.9%
|
12.6%
|
| Dividend Yield |
2.75% |
2.06% |
| FCF Yield |
3.7%
|
0.44%
|
| Analyst Consensus |
Buy
|
Hold
|
Investment Thesis
McDonald's is a global quick-service restaurant franchisor and real-estate platform whose approximately 95% franchised restaurant base generates unusually high-margin, recurring royalty and rent income, supporting a 46.0% operating margin and 31.6% net margin. Business quality is high because its brand, global purchasing scale, nearly 29,000 drive-thrus, digital ecosystem and 210 million 90-day a…
Wells Fargo is a diversified U.S. bank operating consumer and commercial banking, corporate and investment banking, and wealth management, supported by a large deposit franchise, a $2.3 trillion asset base, nationwide advisory distribution, and increasingly relevant capital-markets capabilities. Business quality is high but not without legacy constraints: return on equity is 12.6%, gross margin i…
Accumulation Zones
| Metric |
MCD |
WFC |
| Zone Low |
$242.14 |
$77.53 |
| Zone High |
$274.42 |
$87.87 |
| In Buy Zone? |
Yes
|
Yes
|