MCD vs XOM: Which Is the Better Buy?
Side-by-side comparison of McDonald's Corporation and Exxon Mobil Corporation — 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
Exxon Mobil Corporation · Energy
$154.46
-40.5% upside to fair value
Grade C
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 |
XOM |
| Current Price |
$275.75 |
$154.46 |
| Fair Value Estimate |
$327.62 |
$91.87 |
| Upside to Fair Value |
+18.8%
|
-40.5%
|
| Market Cap |
$196.0B |
$642.0B |
| Forward P/E |
22.6x
|
23.2x
|
| EV / EBITDA |
16.7x
|
10.3x
|
| Price / Sales |
7.1x
|
2.0x
|
| Price / FCF |
27.9x
|
27.2x
|
| Revenue Growth YoY |
+9.4%
|
-1.3%
|
| Gross Margin |
57.4%
|
21.7%
|
| Operating Margin |
46.0%
|
10.5%
|
| Return on Equity |
-434.0%
|
11.0%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
3.59%
|
3.68%
|
| Analyst Consensus |
Buy
|
Buy
|
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…
Exxon Mobil Corporation operates as a global integrated oil and gas company with significant operations in upstream, energy products, chemical products, and specialty products segments. The company benefits from a highly experienced management team with decades of internal tenure, led by CEO Darren Woods. Despite strong cash flow generation and operational scale, Exxon is currently overvalued, tr…
Accumulation Zones
| Metric |
MCD |
XOM |
| Zone Low |
$245.72 |
$68.90 |
| Zone High |
$278.48 |
$78.09 |
| In Buy Zone? |
Yes
|
No
|