Ambev SA ADR (ABEV)vsMcDonald’s Corporation (MCD)
ABEV
Ambev SA ADR
$3.29
+0.30%
CONSUMER DEFENSIVE · Cap: $53.50B
MCD
McDonald’s Corporation
$275.75
-2.80%
CONSUMER CYCLICAL · Cap: $195.92B
Smart Verdict
WallStSmart Research — data-driven comparison
Ambev SA ADR generates 221% more annual revenue ($88.21B vs $27.45B). MCD leads profitability with a 31.6% profit margin vs 17.7%. ABEV appears more attractively valued with a PEG of 2.31. ABEV earns a higher WallStSmart Score of 57/100 (C).
ABEV
Buy57
out of 100
Grade: C
MCD
Buy55
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+74.4%
Fair Value
$11.91
Current Price
$3.29
$8.62 discount
Margin of Safety
-80.4%
Fair Value
$157.30
Current Price
$275.75
$118.45 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Generating 11.6B in free cash flow
Large-cap with strong market position
Attractively priced relative to earnings
Reasonable price relative to book value
Strong operational efficiency at 26.5%
Keeps 32 of every $100 in revenue as profit
Strong operational efficiency at 45.3%
Conservative balance sheet, low leverage
Large-cap with strong market position
Generating 1.6B in free cash flow
Areas to Watch
Expensive relative to growth rate
2.2% earnings growth
Revenue declined 0.1%
ROE of 0.0% — below average capital efficiency
Weak financial health signals
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : ABEV
The strongest argument for ABEV centers on Free Cash Flow, Market Cap, P/E Ratio. Profitability is solid with margins at 17.7% and operating margin at 26.5%.
Bull Case : MCD
The strongest argument for MCD centers on Profit Margin, Operating Margin, Debt/Equity. Profitability is solid with margins at 31.6% and operating margin at 45.3%.
Bear Case : ABEV
The primary concerns for ABEV are PEG Ratio, EPS Growth, Revenue Growth.
Bear Case : MCD
The primary concerns for MCD are Return on Equity, Piotroski F-Score, PEG Ratio.
Key Dynamics to Monitor
ABEV profiles as a declining stock while MCD is a mature play — different risk/reward profiles.
MCD carries more volatility with a beta of 0.44 — expect wider price swings.
MCD is growing revenue faster at 9.4% — sustainability is the question.
ABEV generates stronger free cash flow (11.6B), providing more financial flexibility.
Bottom Line
ABEV scores higher overall (57/100 vs 55/100), backed by strong 17.7% margins. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Ambev SA ADR
CONSUMER DEFENSIVE · BEVERAGES - BREWERS · USA
Ambev SA produces, distributes and sells beer, draft beer, carbonated soft drinks (CSD), other non-alcoholic beverages, malt and food products in the Americas. The company is headquartered in So Paulo, Brazil.
McDonald’s Corporation
CONSUMER CYCLICAL · RESTAURANTS · USA
McDonald's Corporation is an American fast food company, founded in 1940 as a restaurant operated by Richard and Maurice McDonald, in San Bernardino, California, United States. They rechristened their business as a hamburger stand, and later turned the company into a franchise, with the Golden Arches logo being introduced in 1953 at a location in Phoenix, Arizona.
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