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.
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.
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.
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.
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.
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.
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.
McDonald's Competitors List
