WallStSmart

McDonald’s Corporation (MCD)vsToronto Dominion Bank (TD)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Toronto Dominion Bank generates 140% more annual revenue ($65.98B vs $27.45B). TD leads profitability with a 33.0% profit margin vs 31.6%. TD appears more attractively valued with a PEG of 1.01. TD earns a higher WallStSmart Score of 81/100 (A-).

MCD

Buy

55

out of 100

Grade: C-

Growth: 6.0Profit: 8.0Value: 3.3Quality: 5.3
Piotroski: 3/9

TD

Exceptional Buy

81

out of 100

Grade: A-

Growth: 9.3Profit: 8.0Value: 7.0Quality: 3.0
Piotroski: 5/9Altman Z: -0.64
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

MCDSignificantly Overvalued (-80.4%)

Margin of Safety

-80.4%

Fair Value

$157.30

Current Price

$275.75

$118.45 premium

UndervaluedFair: $157.30Overvalued

Intrinsic value data unavailable for TD.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MCD5 strengths · Avg: 9.4/10
Profit MarginProfitability
31.6%10/10

Keeps 32 of every $100 in revenue as profit

Operating MarginProfitability
45.3%10/10

Strong operational efficiency at 45.3%

Debt/EquityHealth
-38.1210/10

Conservative balance sheet, low leverage

Market CapQuality
$195.92B9/10

Large-cap with strong market position

Free Cash FlowQuality
$1.64B8/10

Generating 1.6B in free cash flow

TD6 strengths · Avg: 9.8/10
P/E RatioValuation
11.9x10/10

Attractively priced relative to earnings

Profit MarginProfitability
33.0%10/10

Keeps 33 of every $100 in revenue as profit

Operating MarginProfitability
35.9%10/10

Strong operational efficiency at 35.9%

EPS GrowthGrowth
51.3%10/10

Earnings expanding 51.3% YoY

Free Cash FlowQuality
$35.15B10/10

Generating 35.1B in free cash flow

Market CapQuality
$180.18B9/10

Large-cap with strong market position

Areas to Watch

MCD3 concerns · Avg: 2.7/10
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
2.552/10

Expensive relative to growth rate

TD2 concerns · Avg: 1.5/10
Altman Z-ScoreHealth
-0.642/10

Distress zone — elevated risk

Debt/EquityHealth
2.141/10

Elevated debt levels

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 31.6% and operating margin at 45.3%.

Bull Case : TD

The strongest argument for TD centers on P/E Ratio, Profit Margin, Operating Margin. Profitability is solid with margins at 33.0% and operating margin at 35.9%. Revenue growth of 21.1% demonstrates continued momentum.

Bear Case : MCD

The primary concerns for MCD are Return on Equity, Piotroski F-Score, PEG Ratio.

Bear Case : TD

The primary concerns for TD are Altman Z-Score, Debt/Equity. Debt-to-equity of 2.14 is elevated, increasing financial risk.

Key Dynamics to Monitor

MCD profiles as a mature stock while TD is a growth play — different risk/reward profiles.

TD carries more volatility with a beta of 0.87 — expect wider price swings.

TD is growing revenue faster at 21.1% — sustainability is the question.

TD generates stronger free cash flow (35.1B), providing more financial flexibility.

Bottom Line

TD scores higher overall (81/100 vs 55/100), backed by strong 33.0% margins and 21.1% revenue growth. Both earn "Exceptional 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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Toronto Dominion Bank

FINANCIAL SERVICES · BANKS - DIVERSIFIED · USA

Toronto-Dominion Bank offers a variety of personal and commercial banking products and services in Canada and the United States. The company is headquartered in Toronto, Canada.

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