MCD vs. CMG, BABA, PDD, LOW, BKNG, TJX, SBUX, CVS, COST, and TGT
Should you be buying McDonald's stock or one of its competitors? The main competitors of McDonald's include Chipotle Mexican Grill (CMG), Alibaba Group (BABA), PDD (PDD), Lowe's Companies (LOW), Booking (BKNG), TJX Companies (TJX), Starbucks (SBUX), CVS Health (CVS), Costco Wholesale (COST), and Target (TGT). These companies are all part of the "retail/wholesale" sector.
McDonald's (NYSE:MCD) and Chipotle Mexican Grill (NYSE:CMG) are both large-cap retail/wholesale companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, media sentiment, analyst recommendations, risk, dividends, institutional ownership, earnings, community ranking and profitability.
70.3% of McDonald's shares are owned by institutional investors. Comparatively, 91.3% of Chipotle Mexican Grill shares are owned by institutional investors. 0.2% of McDonald's shares are owned by company insiders. Comparatively, 1.0% of Chipotle Mexican Grill shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
McDonald's has a beta of 0.71, meaning that its stock price is 29% less volatile than the S&P 500. Comparatively, Chipotle Mexican Grill has a beta of 1.28, meaning that its stock price is 28% more volatile than the S&P 500.
McDonald's received 364 more outperform votes than Chipotle Mexican Grill when rated by MarketBeat users. Likewise, 71.91% of users gave McDonald's an outperform vote while only 59.88% of users gave Chipotle Mexican Grill an outperform vote.
In the previous week, Chipotle Mexican Grill had 15 more articles in the media than McDonald's. MarketBeat recorded 88 mentions for Chipotle Mexican Grill and 73 mentions for McDonald's. Chipotle Mexican Grill's average media sentiment score of 0.62 beat McDonald's' score of 0.13 indicating that Chipotle Mexican Grill is being referred to more favorably in the news media.
McDonald's currently has a consensus target price of $318.41, indicating a potential upside of 16.59%. Chipotle Mexican Grill has a consensus target price of $3,137.12, indicating a potential downside of 1.56%. Given McDonald's' stronger consensus rating and higher probable upside, equities research analysts plainly believe McDonald's is more favorable than Chipotle Mexican Grill.
McDonald's has higher revenue and earnings than Chipotle Mexican Grill. McDonald's is trading at a lower price-to-earnings ratio than Chipotle Mexican Grill, indicating that it is currently the more affordable of the two stocks.
McDonald's has a net margin of 33.22% compared to Chipotle Mexican Grill's net margin of 12.70%. Chipotle Mexican Grill's return on equity of 43.74% beat McDonald's' return on equity.
Summary
McDonald's and Chipotle Mexican Grill tied by winning 9 of the 18 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding MCD and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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