McDonald’s Corporation (MCD)vsWarner Bros Discovery Inc (WBD)
MCD
McDonald’s Corporation
$311.70
-0.88%
CONSUMER CYCLICAL · Cap: $219.68B
WBD
Warner Bros Discovery Inc
$27.22
-0.22%
COMMUNICATION SERVICES · Cap: $67.68B
Smart Verdict
WallStSmart Research — data-driven comparison
Warner Bros Discovery Inc generates 39% more annual revenue ($37.30B vs $26.88B). MCD leads profitability with a 31.9% profit margin vs 1.9%. MCD appears more attractively valued with a PEG of 2.74. MCD earns a higher WallStSmart Score of 53/100 (C-).
MCD
Buy53
out of 100
Grade: C-
WBD
Buy51
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
-106.3%
Fair Value
$13.57
Current Price
$27.22
$13.65 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
Large-cap with strong market position
Reasonable price relative to book value
Generating 1.4B 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
2.3% earnings growth
ROE of 2.1% — below average capital efficiency
1.9% margin — thin
Expensive relative to growth rate
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 : WBD
The strongest argument for WBD centers on Market Cap, Price/Book, Free Cash Flow.
Bear Case : MCD
The primary concerns for MCD are P/E Ratio, Return on Equity, Piotroski F-Score.
Bear Case : WBD
The primary concerns for WBD are EPS Growth, Return on Equity, Profit Margin. A P/E of 94.1x leaves little room for execution misses. Thin 1.9% margins leave little buffer for downturns.
Key Dynamics to Monitor
MCD profiles as a mature stock while WBD is a value play — different risk/reward profiles.
WBD carries more volatility with a beta of 1.68 — 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
MCD scores higher overall (53/100 vs 51/100), backed by strong 31.9% 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 →Warner Bros Discovery Inc
COMMUNICATION SERVICES · ENTERTAINMENT · USA
Warner Bros. The company is headquartered in New York, New York.
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