MCD vs WMT: Which Is the Better Buy?
Side-by-side comparison of McDonald's Corporation and Walmart Inc. — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-09-19.
McDonald's Corporation · Consumer Cyclical
$252.78
+40.7% upside to fair value
Med Conviction
Grade A
High Quality
VS
Walmart Inc. · Consumer Defensive
$106.73
-10.8% upside to fair value
Med Conviction
Grade C
High Quality
QuantHub Verdict
MCD has more upside to fair value
(+40.7%).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
MCD |
WMT |
| Current Price |
$252.78 |
$106.73 |
| Fair Value Estimate |
$355.71 |
$95.24 |
| Upside to Fair Value |
+40.7%
|
-10.8%
|
| Market Cap |
$179.6B |
$849.4B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
15.5x
|
21.3x
|
| Price / Sales |
6.5x
|
1.1x
|
| Price / FCF |
23.1x
|
62.8x
|
| Revenue Growth YoY |
+3.8%
|
+5.9%
|
| Gross Margin |
57.4%
|
25.2%
|
| Operating Margin |
45.8%
|
4.4%
|
| Return on Equity |
-561.2%
|
22.7%
|
| Dividend Yield |
2.94% |
0.92% |
| FCF Yield |
4.32%
|
1.59%
|
| Analyst Consensus |
Buy
|
Strong Buy
|
Investment Thesis
McDonald's operates a globally scaled, approximately 95% franchised restaurant system with 46,028 restaurants in more than 100 countries, combining a powerful consumer brand, real-estate-backed franchise economics, supplier scale and digital loyalty reach. Business quality is high despite meaningful leverage: TTM gross, operating and net margins are 57.4%, 45.8% and 31.7%, respectively, while loy…
Walmart Inc. is the world's largest retailer by revenue, operating more than 10,000 stores and clubs across Walmart U.S., Walmart International, and Sam's Club, with a fast-growing e-commerce and advertising ecosystem layered on top of a grocery-led, everyday-low-price model. The business quality is high: scale and sourcing power underpin a durable cost advantage, ROE is 22.7%, and revenue grew 5…
Accumulation Zones
| Metric |
MCD |
WMT |
| Zone Low |
$266.78 |
$71.43 |
| Zone High |
$302.35 |
$80.95 |
| In Buy Zone? |
Yes
|
No
|