McDonald’s Corporation (MCD)vsPhilip Morris International Inc (PM)
MCD
McDonald’s Corporation
$275.75
-2.80%
CONSUMER CYCLICAL · Cap: $195.92B
PM
Philip Morris International Inc
$170.99
-0.07%
CONSUMER DEFENSIVE · Cap: $266.69B
Smart Verdict
WallStSmart Research — data-driven comparison
Philip Morris International Inc generates 51% more annual revenue ($41.49B vs $27.45B). MCD leads profitability with a 31.6% profit margin vs 26.7%. PM appears more attractively valued with a PEG of 1.93. MCD earns a higher WallStSmart Score of 55/100 (C-).
MCD
Buy55
out of 100
Grade: C-
PM
Buy54
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
-48.0%
Fair Value
$115.64
Current Price
$170.99
$55.35 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
Strong operational efficiency at 36.0%
Keeps 27 of every $100 in revenue as profit
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
ROE of 0.0% — below average capital efficiency
Earnings declined 9.3%
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 : PM
The strongest argument for PM centers on Market Cap, Operating Margin, Profit Margin. Profitability is solid with margins at 26.7% and operating margin at 36.0%.
Bear Case : MCD
The primary concerns for MCD are Return on Equity, Piotroski F-Score, PEG Ratio.
Bear Case : PM
The primary concerns for PM are PEG Ratio, Return on Equity, EPS Growth.
Key Dynamics to Monitor
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.
Monitor RESTAURANTS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
MCD scores higher overall (55/100 vs 54/100), backed by strong 31.6% 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.
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 →Philip Morris International Inc
CONSUMER DEFENSIVE · TOBACCO · USA
Philip Morris International Inc. (PMI) is a Swiss-American multinational cigarette and tobacco manufacturing company, with products sold in over 180 countries. The most recognized and best selling product of the company is Marlboro.
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