McDonald’s Corporation (MCD)vsPepsiCo Inc (PEP)
MCD
McDonald’s Corporation
$275.75
-2.80%
CONSUMER CYCLICAL · Cap: $195.92B
PEP
PepsiCo Inc
$154.62
-1.07%
CONSUMER DEFENSIVE · Cap: $213.64B
Smart Verdict
WallStSmart Research — data-driven comparison
PepsiCo Inc generates 248% more annual revenue ($95.45B vs $27.45B). MCD leads profitability with a 31.6% profit margin vs 9.2%. PEP appears more attractively valued with a PEG of 1.68. PEP earns a higher WallStSmart Score of 63/100 (C+).
MCD
Buy55
out of 100
Grade: C-
PEP
Buy63
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-80.4%
Fair Value
$157.30
Current Price
$275.75
$118.45 premium
Margin of Safety
-1.0%
Fair Value
$154.81
Current Price
$154.62
$0.19 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
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
Mega-cap, among the largest globally
Every $100 of equity generates 44 in profit
Earnings expanding 27.8% YoY
Areas to Watch
ROE of 0.0% — below average capital efficiency
Weak financial health signals
Expensive relative to growth rate
Expensive relative to growth rate
Trading at 9.9x book value
Weak financial health signals
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull 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%.
Bull Case : PEP
The strongest argument for PEP centers on Market Cap, Return on Equity, EPS Growth.
Bear Case : MCD
The primary concerns for MCD are Return on Equity, Piotroski F-Score, PEG Ratio.
Bear Case : PEP
The primary concerns for PEP are PEG Ratio, Price/Book, Piotroski F-Score.
Key Dynamics to Monitor
MCD profiles as a mature stock while PEP is a value 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.
MCD generates stronger free cash flow (1.6B), providing more financial flexibility.
Bottom Line
PEP scores higher overall (63/100 vs 55/100). 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 →PepsiCo Inc
CONSUMER DEFENSIVE · BEVERAGES - NON-ALCOHOLIC · USA
PepsiCo, Inc. is an American based multinational food, snack, and beverage corporation headquartered in Harrison, New York, in the hamlet of Purchase. PepsiCo's business encompasses all aspects of the food and beverage market. It oversees the manufacturing, distribution, and marketing of its products.
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