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 2026-04-11.
McDonald's Corporation · Consumer Cyclical
$305.68
+4.7% upside to fair value
Med Conviction
Grade B
VS
Exxon Mobil Corporation · Energy
$152.30
-33.0% upside to fair value
Med Conviction
Grade C+
QuantHub Verdict
MCD has more upside to fair value
(+4.7%).
XOM trades at a lower forward P/E
(17.5x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
MCD |
XOM |
| Current Price |
$305.68 |
$152.30 |
| Fair Value Estimate |
$320.00 |
$102.00 |
| Upside to Fair Value |
+4.7%
|
-33.0%
|
| Market Cap |
$218.1B |
$634.6B |
| Forward P/E |
24.5x
|
17.5x
|
| EV / EBITDA |
18.6x
|
9.8x
|
| Price / Sales |
8.1x
|
2.0x
|
| Price / FCF |
30.3x
|
26.9x
|
| Revenue Growth YoY |
+3.7%
|
-4.5%
|
| Gross Margin |
57.4%
|
21.7%
|
| Operating Margin |
46.1%
|
10.5%
|
| Return on Equity |
—
|
11.1%
|
| Dividend Yield |
2.4% |
2.65% |
| FCF Yield |
3.3%
|
3.72%
|
| Analyst Consensus |
Buy
|
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…
Exxon Mobil is a world-class integrated energy supermajor with unmatched Permian Basin scale following the Pioneer Natural Resources acquisition, a high-margin Guyana growth engine, and disciplined capital allocation. However, the stock remains significantly overvalued relative to its own 5-year history on every key metric. At $152, XOM trades at roughly 22x trailing earnings, 1.96x sales, and 27…
Accumulation Zones
| Metric |
MCD |
XOM |
| Zone Low |
$240.00 |
$77.00 |
| Zone High |
$272.00 |
$92.00 |
| In Buy Zone? |
No
|
No
|