MCD vs. CMG, BABA, PDD, LOW, BKNG, TJX, SBUX, CVS, TGT, and COST
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), Target (TGT), and Costco Wholesale (COST). These companies are all part of the "retail/wholesale" sector.
Chipotle Mexican Grill (NYSE:CMG) and McDonald's (NYSE:MCD) are both large-cap retail/wholesale companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, earnings, dividends, community ranking, media sentiment, profitability, risk, institutional ownership and analyst recommendations.
Chipotle Mexican Grill has a beta of 1.29, indicating that its stock price is 29% more volatile than the S&P 500. Comparatively, McDonald's has a beta of 0.72, indicating that its stock price is 28% less volatile than the S&P 500.
McDonald's received 379 more outperform votes than Chipotle Mexican Grill when rated by MarketBeat users. Likewise, 71.94% of users gave McDonald's an outperform vote while only 59.82% of users gave Chipotle Mexican Grill an outperform vote.
91.3% of Chipotle Mexican Grill shares are held by institutional investors. Comparatively, 70.3% of McDonald's shares are held by institutional investors. 1.0% of Chipotle Mexican Grill shares are held by insiders. Comparatively, 0.3% of McDonald's shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
McDonald's has a net margin of 33.22% compared to McDonald's' net margin of 12.45%. McDonald's' return on equity of 44.41% beat Chipotle Mexican Grill's return on equity.
Chipotle Mexican Grill currently has a consensus target price of $2,566.37, indicating a potential downside of 11.57%. McDonald's has a consensus target price of $320.60, indicating a potential upside of 13.71%. Given Chipotle Mexican Grill's stronger consensus rating and higher probable upside, analysts plainly believe McDonald's is more favorable than Chipotle Mexican Grill.
In the previous week, McDonald's had 67 more articles in the media than Chipotle Mexican Grill. MarketBeat recorded 109 mentions for McDonald's and 42 mentions for Chipotle Mexican Grill. McDonald's' average media sentiment score of 0.55 beat Chipotle Mexican Grill's score of 0.25 indicating that Chipotle Mexican Grill is being referred to more favorably in the media.
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.
Summary
McDonald's beats Chipotle Mexican Grill on 10 of the 18 factors compared between the two stocks.
Get McDonald's News Delivered to You Automatically
Sign up to receive the latest news and ratings for MCD and its competitors with MarketBeat's FREE daily newsletter.
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.
Skip ChartThis 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.
Skip Chart
McDonald's Competitors List
Related Companies and Tools