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DOW   32,717.60
QQQ   312.72
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S&P 500   4,027.81
DOW   32,717.60
QQQ   312.72
3 Undervalued Dividend Payers For Volatile Market Conditions
Urgent Warning (Ad)
Three Pullback Opportunities in Tech Right Now
Three Mid Caps Wall Street Sees Doubling Within 12 Months
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S&P 500   4,027.81
DOW   32,717.60
QQQ   312.72
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Urgent Warning (Ad)
Three Pullback Opportunities in Tech Right Now
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McDonald's - MCD Competitors

$277.44
+1.59 (+0.58%)
(As of 03/29/2023 12:00 AM ET)
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Compare
Today's Range
$276.45
$278.15
50-Day Range
$260.66
$277.44
52-Week Range
$228.34
$281.67
Volume
2.04 million shs
Average Volume
2.79 million shs
Market Capitalization
$202.95 billion
P/E Ratio
33.23
Dividend Yield
2.19%
Price Target
$290.15

MCD vs. COST, BABA, LOW, HD, SBUX, BKNG, CVS, PDD, TJX, and TGT

Should you be buying McDonald's stock or one of its competitors? The main competitors of McDonald's include Costco Wholesale (COST), Alibaba Group (BABA), Lowe's Companies (LOW), Home Depot (HD), Starbucks (SBUX), Booking (BKNG), CVS Health (CVS), PDD (PDD), TJX Companies (TJX), and Target (TGT). These companies are all part of the "retail/wholesale" sector.

McDonald's vs.

McDonald's (NYSE:MCD) and Costco Wholesale (NASDAQ:COST) are both large-cap retail/wholesale companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, profitability, community ranking, media sentiment, valuation, institutional ownership, analyst recommendations, risk and dividends.

McDonald's pays an annual dividend of $6.08 per share and has a dividend yield of 2.2%. Costco Wholesale pays an annual dividend of $3.60 per share and has a dividend yield of 0.7%. McDonald's pays out 72.8% of its earnings in the form of a dividend. Costco Wholesale pays out 26.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

McDonald's has a beta of 0.62, suggesting that its share price is 38% less volatile than the S&P 500. Comparatively, Costco Wholesale has a beta of 0.79, suggesting that its share price is 21% less volatile than the S&P 500.

In the previous week, Costco Wholesale had 8 more articles in the media than McDonald's. MarketBeat recorded 33 mentions for Costco Wholesale and 25 mentions for McDonald's. Costco Wholesale's average media sentiment score of 0.68 beat McDonald's' score of 0.05 indicating that Costco Wholesale is being referred to more favorably in the news media.

Company Very Positive Positive Neutral Negative Very Negative Overall Sentiment
McDonald's
8 Very Positive mention(s)
4 Positive mention(s)
8 Neutral mention(s)
2 Negative mention(s)
1 Very Negative mention(s)
Neutral
Costco Wholesale
12 Very Positive mention(s)
9 Positive mention(s)
8 Neutral mention(s)
1 Negative mention(s)
0 Very Negative mention(s)
Positive

McDonald's received 245 more outperform votes than Costco Wholesale when rated by MarketBeat users. Likewise, 72.92% of users gave McDonald's an outperform vote while only 72.62% of users gave Costco Wholesale an outperform vote.

CompanyUnderperformOutperform
McDonald'sOutperform Votes
1974
72.92%
Underperform Votes
733
27.08%
Costco WholesaleOutperform Votes
1729
72.62%
Underperform Votes
652
27.38%

66.9% of McDonald's shares are held by institutional investors. Comparatively, 66.0% of Costco Wholesale shares are held by institutional investors. 0.2% of McDonald's shares are held by company insiders. Comparatively, 0.2% of Costco Wholesale shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

McDonald's has a net margin of 26.65% compared to Costco Wholesale's net margin of 2.58%. Costco Wholesale's return on equity of 28.66% beat McDonald's' return on equity.

Company Net Margins Return on Equity Return on Assets
McDonald's 26.65% -120.10% 15.04%
Costco Wholesale 2.58% 28.66% 9.39%

McDonald's currently has a consensus target price of $290.16, indicating a potential upside of 4.58%. Costco Wholesale has a consensus target price of $550.16, indicating a potential upside of 12.08%. Given Costco Wholesale's higher possible upside, analysts clearly believe Costco Wholesale is more favorable than McDonald's.

Company Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
McDonald's
0 Sell rating(s)
5 Hold rating(s)
20 Buy rating(s)
0 Strong Buy rating(s)
2.80
Costco Wholesale
0 Sell rating(s)
5 Hold rating(s)
16 Buy rating(s)
0 Strong Buy rating(s)
2.76

McDonald's has higher earnings, but lower revenue than Costco Wholesale. McDonald's is trading at a lower price-to-earnings ratio than Costco Wholesale, indicating that it is currently the more affordable of the two stocks.

CompanyGross RevenuePrice/Sales RatioNet IncomeEarnings Per SharePrice/Earnings Ratio
McDonald's$23.18 billion8.75$6.18 billion$8.3533.23
Costco Wholesale$226.95 billion0.96$5.84 billion$13.6136.07

Summary

McDonald's and Costco Wholesale tied by winning 10 of the 20 factors compared between the two stocks.

New MarketBeat Followers Over Time

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.
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Media Sentiment Over Time

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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MCD vs. The Competition

MetricMcDonald'sEating places IndustryRetail SectorNYSE Exchange
Market Cap$202.95B$7.73B$16.69B$14.44B
Dividend Yield2.24%3.35%169.70%3.92%
P/E Ratio33.2330.3438.4423.07
Price / Sales8.751.9011.6110.87
Price / Cash21.2419.6236.0116.42
Price / Book-33.836.174.796.84
Net Income$6.18B$227.45M$543.87M$868.68M
7 Day Performance2.90%-0.32%1.29%2.93%
1 Month Performance5.13%-1.57%-4.97%-5.27%
1 Year Performance11.41%-0.90%-13.73%-13.85%

McDonald's Competitors List

CompanyMarketRankShare PriceAnalysts' Price Target1Y Price PerformanceMarket CapRevenueP/E RatioEmployee CountIndicator(s)
COST
Costco Wholesale
2.8847 of 5 stars
$490.87
+0.8%
$550.16
+12.1%
-13.9%$217.69B$226.95B36.07304,000Analyst Report
Short Interest ↑
BABA
Alibaba Group
2.4238 of 5 stars
$99.92
+1.5%
$148.13
+48.3%
-14.4%$264.60B$134.57B54.90254,941Analyst Report
Options Volume
News Coverage
High Trading Volume
LOW
Lowe's Companies
3.1801 of 5 stars
$191.94
+0.9%
$225.00
+17.2%
-12.6%$119.14B$97.06B19.17340,000Dividend Announcement
Analyst Upgrade
HD
Home Depot
2.6453 of 5 stars
$283.36
+0.9%
$331.45
+17.0%
-10.8%$287.60B$157.40B16.99518,100Short Interest ↑
SBUX
Starbucks
2.6304 of 5 stars
$100.62
+1.9%
$108.74
+8.1%
+10.3%$115.64B$32.25B35.06402,000Analyst Revision
BKNG
Booking
2.221 of 5 stars
$2,571.77
+1.0%
$2,683.96
+4.4%
+8.4%$96.83B$17.09B33.0321,600
CVS
CVS Health
3.2392 of 5 stars
$74.09
+1.3%
$119.65
+61.5%
-29.2%$95.14B$322.47B23.75300,000Short Interest ↓
PDD
PDD
2.733 of 5 stars
$72.86
+0.0%
$104.40
+43.3%
+64.5%$90.25B$130.56B22.779,762Analyst Report
TJX
TJX Companies
2.9362 of 5 stars
$76.55
+0.4%
$86.07
+12.4%
+19.0%$88.45B$49.94B25.69340,000Dividend Increase
TGT
Target
2.8363 of 5 stars
$158.11
-1.0%
$181.69
+14.9%
-29.1%$72.79B$109.12B26.44440,000Negative News
This page (NYSE:MCD) was last updated on 3/30/2023 by MarketBeat.com Staff