WallStSmart

McDonald’s Corporation (MCD)vsSea Ltd (SE)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

McDonald’s Corporation generates 10% more annual revenue ($27.70B vs $25.19B). MCD leads profitability with a 31.7% profit margin vs 6.4%. SE appears more attractively valued with a PEG of 1.53. MCD earns a higher WallStSmart Score of 53/100 (C-).

MCD

Buy

53

out of 100

Grade: C-

Growth: 5.3Profit: 8.0Value: 3.3Quality: 6.5
Piotroski: 3/9Altman Z: 2.79

SE

Buy

52

out of 100

Grade: C-

Growth: 8.0Profit: 5.5Value: 6.0Quality: 7.5
Piotroski: 6/9Altman Z: 1.53
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

MCDSignificantly Overvalued (-78.2%)

Margin of Safety

-78.2%

Fair Value

$153.73

Current Price

$274.48

$120.75 premium

UndervaluedFair: $153.73Overvalued
SEUndervalued (+52.3%)

Margin of Safety

+52.3%

Fair Value

$240.26

Current Price

$113.43

$126.83 discount

UndervaluedFair: $240.26Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MCD5 strengths · Avg: 9.4/10
Profit MarginProfitability
31.7%10/10

Keeps 32 of every $100 in revenue as profit

Operating MarginProfitability
47.0%10/10

Strong operational efficiency at 47.0%

Debt/EquityHealth
-42.6810/10

Conservative balance sheet, low leverage

Market CapQuality
$192.31B9/10

Large-cap with strong market position

Free Cash FlowQuality
$1.73B8/10

Generating 1.7B in free cash flow

SE3 strengths · Avg: 9.3/10
Revenue GrowthGrowth
46.6%10/10

Revenue surging 46.6% year-over-year

Market CapQuality
$65.38B9/10

Large-cap with strong market position

Debt/EquityHealth
0.289/10

Conservative balance sheet, low leverage

Areas to Watch

MCD4 concerns · Avg: 3.0/10
Revenue GrowthGrowth
3.8%4/10

3.8% revenue growth

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
2.582/10

Expensive relative to growth rate

SE4 concerns · Avg: 3.8/10
PEG RatioValuation
1.534/10

Expensive relative to growth rate

EPS GrowthGrowth
3.1%4/10

3.1% earnings growth

Altman Z-ScoreHealth
1.534/10

Distress zone — elevated risk

Profit MarginProfitability
6.4%3/10

6.4% margin — thin

Comparative Analysis Report

WallStSmart Research

Bull Case : MCD

The strongest argument for MCD centers on Profit Margin, Operating Margin, Debt/Equity. Profitability is solid with margins at 31.7% and operating margin at 47.0%.

Bull Case : SE

The strongest argument for SE centers on Revenue Growth, Market Cap, Debt/Equity. Revenue growth of 46.6% demonstrates continued momentum.

Bear Case : MCD

The primary concerns for MCD are Revenue Growth, Return on Equity, Piotroski F-Score.

Bear Case : SE

The primary concerns for SE are PEG Ratio, EPS Growth, Altman Z-Score. A P/E of 43.7x leaves little room for execution misses.

Key Dynamics to Monitor

MCD profiles as a value stock while SE is a hypergrowth play — different risk/reward profiles.

SE carries more volatility with a beta of 1.51 — expect wider price swings.

SE is growing revenue faster at 46.6% — sustainability is the question.

MCD generates stronger free cash flow (1.7B), providing more financial flexibility.

Bottom Line

MCD scores higher overall (53/100 vs 52/100), backed by strong 31.7% margins. SE offers better value entry with a 52.3% margin of safety. 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.

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Sea Ltd

CONSUMER CYCLICAL · INTERNET RETAIL · USA

Sea Limited is engaged in the digital entertainment, e-commerce and digital financial services businesses in Southeast Asia, Latin America, the rest of Asia and internationally. The company is headquartered in Singapore.

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