McDonald’s Corporation (MCD)vs3M Company (MMM)
MCD
McDonald’s Corporation
$311.70
-0.88%
CONSUMER CYCLICAL · Cap: $219.68B
MMM
3M Company
$148.05
+0.94%
INDUSTRIALS · Cap: $77.25B
Smart Verdict
WallStSmart Research — data-driven comparison
McDonald’s Corporation generates 8% more annual revenue ($26.88B vs $24.95B). MCD leads profitability with a 31.9% profit margin vs 13.0%. MMM appears more attractively valued with a PEG of 1.43. MMM earns a higher WallStSmart Score of 54/100 (C-).
MCD
Buy53
out of 100
Grade: C-
MMM
Buy54
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-31.1%
Fair Value
$237.84
Current Price
$311.70
$73.86 premium
Margin of Safety
-323.6%
Fair Value
$40.80
Current Price
$148.05
$107.25 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Keeps 32 of every $100 in revenue as profit
Strong operational efficiency at 45.1%
Conservative balance sheet, low leverage
Generating 1.6B in free cash flow
Every $100 of equity generates 76 in profit
Large-cap with strong market position
Generating 1.3B in free cash flow
Areas to Watch
Moderate valuation
ROE of 0.0% — below average capital efficiency
Weak financial health signals
Expensive relative to growth rate
Trading at 16.7x book value
2.0% revenue growth
Earnings declined 19.9%
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : MCD
The strongest argument for MCD centers on Market Cap, Profit Margin, Operating Margin. Profitability is solid with margins at 31.9% and operating margin at 45.1%.
Bull Case : MMM
The strongest argument for MMM centers on Return on Equity, Market Cap, Free Cash Flow. PEG of 1.43 suggests the stock is reasonably priced for its growth.
Bear Case : MCD
The primary concerns for MCD are P/E Ratio, Return on Equity, Piotroski F-Score.
Bear Case : MMM
The primary concerns for MMM are Price/Book, Revenue Growth, EPS Growth. Debt-to-equity of 2.75 is elevated, increasing financial risk.
Key Dynamics to Monitor
MCD profiles as a mature stock while MMM is a value play — different risk/reward profiles.
MMM carries more volatility with a beta of 1.13 — expect wider price swings.
MCD is growing revenue faster at 9.7% — sustainability is the question.
MCD generates stronger free cash flow (1.6B), providing more financial flexibility.
Bottom Line
MMM scores higher overall (54/100 vs 53/100). 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.
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 →3M Company
INDUSTRIALS · CONGLOMERATES · USA
The 3M Company is an American multinational conglomerate corporation operating in the fields of industry, worker safety, US health care, and consumer goods. The company produces over 60,000 products under several brands, including adhesives, abrasives, laminates, passive fire protection, personal protective equipment, window films, paint protection films, dental and orthodontic products, electrical and electronic connecting and insulating materials, medical products, car-care products, electronic circuits, healthcare software and optical films. It is based in Maplewood, a suburb of Saint Paul, Minnesota.
Visit Website →Compare with Other RESTAURANTS Stocks
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