Applovin Corp (APP)vsMcDonald’s Corporation (MCD)
APP
Applovin Corp
$468.55
-6.08%
COMMUNICATION SERVICES · Cap: $167.59B
MCD
McDonald’s Corporation
$275.75
-2.80%
CONSUMER CYCLICAL · Cap: $195.92B
Smart Verdict
WallStSmart Research — data-driven comparison
McDonald’s Corporation generates 345% more annual revenue ($27.45B vs $6.16B). APP leads profitability with a 64.3% profit margin vs 31.6%. APP appears more attractively valued with a PEG of 1.33. APP earns a higher WallStSmart Score of 77/100 (B+).
APP
Strong Buy77
out of 100
Grade: B+
MCD
Buy55
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-56.9%
Fair Value
$242.94
Current Price
$468.55
$225.61 premium
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
Every $100 of equity generates 266 in profit
Keeps 64 of every $100 in revenue as profit
Strong operational efficiency at 78.1%
Revenue surging 59.0% year-over-year
Earnings expanding 113.0% YoY
Safe zone — low bankruptcy risk
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
Elevated debt levels
Premium valuation, high expectations priced in
Trading at 74.3x book value
ROE of 0.0% — below average capital efficiency
Weak financial health signals
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : APP
The strongest argument for APP centers on Return on Equity, Profit Margin, Operating Margin. Profitability is solid with margins at 64.3% and operating margin at 78.1%. Revenue growth of 59.0% demonstrates continued momentum.
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 : APP
The primary concerns for APP are Debt/Equity, P/E Ratio, Price/Book. A P/E of 43.3x leaves little room for execution misses. Debt-to-equity of 1.66 is elevated, increasing financial risk.
Bear Case : MCD
The primary concerns for MCD are Return on Equity, Piotroski F-Score, PEG Ratio.
Key Dynamics to Monitor
APP profiles as a growth stock while MCD is a mature play — different risk/reward profiles.
APP carries more volatility with a beta of 2.37 — expect wider price swings.
APP is growing revenue faster at 59.0% — sustainability is the question.
MCD generates stronger free cash flow (1.6B), providing more financial flexibility.
Bottom Line
APP scores higher overall (77/100 vs 55/100), backed by strong 64.3% margins and 59.0% revenue growth. Both earn "Strong 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.
Applovin Corp
COMMUNICATION SERVICES · ADVERTISING AGENCIES · USA
AppLovin Corporation is committed to creating a software-based platform for mobile application developers to improve the marketing and monetization of their applications globally. The company is headquartered in Palo Alto, California.
Visit Website →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.
Visit Website →Compare with Other ADVERTISING AGENCIES Stocks
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