AMZN vs. MCD: A Head-to-Head Stock Comparison
Here’s a clear look at AMZN and MCD, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | AMZN | MCD |
|---|---|---|
| Company Name | Amazon.com, Inc. | McDonald's Corporation |
| Country | United States | United States |
| GICS Sector | Consumer Discretionary | Consumer Discretionary |
| GICS Industry Group | Consumer Discretionary Distribution & Retail | Consumer Services |
| GICS Industry | Broadline Retail | Hotels, Restaurants & Leisure |
| GICS Sub-Industry | Broadline Retail | Restaurants |
| Market Capitalization | 2,893.55 billion USD | 195.10 billion USD |
| Currency | USD | USD |
| Exchange | NasdaqGS | NYSE |
| Listing Date | May 15, 1997 | July 5, 1966 |
| Security Type | Common Stock | Common Stock |
AMZN’s market capitalization (2,893.55 billion USD) is substantially larger than MCD’s (195.10 billion USD), indicating a significant difference in their market valuations.
Historical Performance
This chart compares the performance of AMZN and MCD by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.
Historical Performance at a Glance
| Symbol | AMZN | MCD |
|---|---|---|
| 5-Day Price Return | -1.67% | -3.71% |
| 13-Week Price Return | 27.90% | -16.07% |
| 26-Week Price Return | 5.90% | -7.35% |
| 52-Week Price Return | 39.33% | -12.46% |
| Month-to-Date Return | 1.48% | -6.47% |
| Year-to-Date Return | 16.54% | -10.15% |
| 10-Day Avg. Volume | 51.07M | 4.66M |
| 3-Month Avg. Volume | 49.59M | 3.41M |
| 3-Month Volatility | 30.77% | 18.51% |
| Beta | 1.47 | 0.43 |
AMZN’s beta of 1.47 points to significantly higher volatility compared to MCD (beta: 0.43), suggesting AMZN has greater potential for both gains and losses relative to market movements.
Profitability
Return on Equity (TTM)
AMZN
23.34%
Broadline Retail Industry
- Max
- 42.68%
- Q3
- 27.12%
- Median
- 13.76%
- Q1
- 8.14%
- Min
- -3.67%
AMZN’s Return on Equity of 23.34% is on par with the norm for the Broadline Retail industry, indicating its profitability relative to shareholder equity is typical for the sector.
MCD
95.13%
Hotels, Restaurants & Leisure Industry
- Max
- 115.68%
- Q3
- 46.70%
- Median
- 19.85%
- Q1
- -0.52%
- Min
- -66.22%
In the upper quartile for the Hotels, Restaurants & Leisure industry, MCD’s Return on Equity of 95.13% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
Net Profit Margin (TTM)
AMZN
12.22%
Broadline Retail Industry
- Max
- 18.30%
- Q3
- 9.33%
- Median
- 6.88%
- Q1
- 1.69%
- Min
- -0.47%
A Net Profit Margin of 12.22% places AMZN in the upper quartile for the Broadline Retail industry, signifying strong profitability and more effective cost management than most of its peers.
MCD
31.85%
Hotels, Restaurants & Leisure Industry
- Max
- 24.36%
- Q3
- 13.40%
- Median
- 6.29%
- Q1
- 1.17%
- Min
- -13.54%
MCD’s Net Profit Margin of 31.85% is exceptionally high, placing it well beyond the typical range for the Hotels, Restaurants & Leisure industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.
Operating Profit Margin (TTM)
AMZN
11.50%
Broadline Retail Industry
- Max
- 21.56%
- Q3
- 12.15%
- Median
- 9.00%
- Q1
- 3.08%
- Min
- 0.22%
AMZN’s Operating Profit Margin of 11.50% is around the midpoint for the Broadline Retail industry, indicating that its efficiency in managing core business operations is typical for the sector.
MCD
46.09%
Hotels, Restaurants & Leisure Industry
- Max
- 46.09%
- Q3
- 21.98%
- Median
- 11.07%
- Q1
- 3.82%
- Min
- -14.74%
An Operating Profit Margin of 46.09% places MCD in the upper quartile for the Hotels, Restaurants & Leisure industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
Profitability at a Glance
| Symbol | AMZN | MCD |
|---|---|---|
| Return on Equity (TTM) | 23.34% | 95.13% |
| Return on Assets (TTM) | 11.55% | 14.51% |
| Net Profit Margin (TTM) | 12.22% | 31.85% |
| Operating Profit Margin (TTM) | 11.50% | 46.09% |
| Gross Profit Margin (TTM) | 50.60% | 57.41% |
Financial Strength
Current Ratio (MRQ)
AMZN
1.18
Broadline Retail Industry
- Max
- 2.41
- Q3
- 1.67
- Median
- 1.31
- Q1
- 1.16
- Min
- 0.97
AMZN’s Current Ratio of 1.18 aligns with the median group of the Broadline Retail industry, indicating that its short-term liquidity is in line with its sector peers.
MCD
0.95
Hotels, Restaurants & Leisure Industry
- Max
- 2.65
- Q3
- 1.46
- Median
- 0.96
- Q1
- 0.62
- Min
- 0.20
MCD’s Current Ratio of 0.95 aligns with the median group of the Hotels, Restaurants & Leisure industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio (MRQ)
AMZN
0.27
Broadline Retail Industry
- Max
- 1.46
- Q3
- 1.11
- Median
- 0.47
- Q1
- 0.27
- Min
- 0.00
AMZN’s Debt-to-Equity Ratio of 0.27 is typical for the Broadline Retail industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
MCD
40.64
Hotels, Restaurants & Leisure Industry
- Max
- 19.18
- Q3
- 9.87
- Median
- 2.73
- Q1
- 0.63
- Min
- 0.00
With a Debt-to-Equity Ratio of 40.64, MCD operates with exceptionally high leverage compared to the Hotels, Restaurants & Leisure industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.
Interest Coverage Ratio (TTM)
AMZN
0.62
Broadline Retail Industry
- Max
- 57.95
- Q3
- 27.71
- Median
- 8.92
- Q1
- 1.39
- Min
- -37.88
AMZN’s Interest Coverage Ratio of 0.62 is a critical concern. A value below 1.0 means operating earnings are insufficient to cover interest expenses, indicating severe financial strain and high default risk.
MCD
9.07
Hotels, Restaurants & Leisure Industry
- Max
- 16.59
- Q3
- 8.43
- Median
- 3.36
- Q1
- 0.68
- Min
- -10.52
MCD’s Interest Coverage Ratio of 9.07 is in the upper quartile for the Hotels, Restaurants & Leisure industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
Financial Strength at a Glance
| Symbol | AMZN | MCD |
|---|---|---|
| Current Ratio (MRQ) | 1.18 | 0.95 |
| Quick Ratio (MRQ) | 1.01 | 0.95 |
| Debt-to-Equity Ratio (MRQ) | 0.27 | 40.64 |
| Interest Coverage Ratio (TTM) | 0.62 | 9.07 |
Growth
Revenue Growth
Revenue Growth at a Glance
| Symbol | AMZN | MCD |
|---|---|---|
| Revenue Growth (MRQ vs Prior YoY) | 16.61% | 9.72% |
| Revenue Growth (TTM vs Prior YoY) | 14.22% | 3.73% |
| 3-Year Revenue CAGR | 11.73% | 5.06% |
| 5-Year Revenue CAGR | 13.18% | 6.96% |
EPS Growth
EPS Growth at a Glance
| Symbol | AMZN | MCD |
|---|---|---|
| EPS Growth (MRQ vs Prior YoY) | 75.33% | 8.04% |
| EPS Growth (TTM vs Prior YoY) | 36.46% | 4.90% |
| 3-Year EPS CAGR | -- | 12.78% |
| 5-Year EPS CAGR | 27.96% | 13.64% |
Dividend
Dividend Yield (TTM)
AMZN
0.00%
Broadline Retail Industry
- Max
- 5.48%
- Q3
- 3.06%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
AMZN currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.
MCD
2.63%
Hotels, Restaurants & Leisure Industry
- Max
- 4.44%
- Q3
- 2.07%
- Median
- 0.37%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 2.63%, MCD offers a more attractive income stream than most of its peers in the Hotels, Restaurants & Leisure industry, signaling a strong commitment to shareholder returns.
Dividend Payout Ratio (TTM)
AMZN
0.00%
Broadline Retail Industry
- Max
- 30.64%
- Q3
- 27.27%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
AMZN has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.
MCD
59.73%
Hotels, Restaurants & Leisure Industry
- Max
- 91.21%
- Q3
- 39.37%
- Median
- 9.97%
- Q1
- 0.00%
- Min
- 0.00%
MCD’s Dividend Payout Ratio of 59.73% is in the upper quartile for the Hotels, Restaurants & Leisure industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.
Dividend at a Glance
| Symbol | AMZN | MCD |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 2.63% |
| Dividend Payout Ratio (TTM) | 0.00% | 59.73% |
Valuation
Price-to-Earnings Ratio (TTM)
AMZN
32.28
Broadline Retail Industry
- Max
- 40.15
- Q3
- 24.02
- Median
- 19.19
- Q1
- 9.76
- Min
- 5.44
A P/E Ratio of 32.28 places AMZN in the upper quartile for the Broadline Retail industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.
MCD
22.74
Hotels, Restaurants & Leisure Industry
- Max
- 47.71
- Q3
- 34.72
- Median
- 21.15
- Q1
- 16.96
- Min
- 1.63
MCD’s P/E Ratio of 22.74 is within the middle range for the Hotels, Restaurants & Leisure industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
Price-to-Sales Ratio (TTM)
AMZN
3.95
Broadline Retail Industry
- Max
- 4.30
- Q3
- 2.35
- Median
- 1.59
- Q1
- 0.73
- Min
- 0.10
AMZN’s P/S Ratio of 3.95 is in the upper echelon for the Broadline Retail industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
MCD
7.24
Hotels, Restaurants & Leisure Industry
- Max
- 7.89
- Q3
- 3.84
- Median
- 1.91
- Q1
- 0.66
- Min
- 0.17
MCD’s P/S Ratio of 7.24 is in the upper echelon for the Hotels, Restaurants & Leisure industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
Price-to-Book Ratio (MRQ)
AMZN
5.07
Broadline Retail Industry
- Max
- 16.01
- Q3
- 10.37
- Median
- 4.39
- Q1
- 2.10
- Min
- 0.50
AMZN’s P/B Ratio of 5.07 is within the conventional range for the Broadline Retail industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
MCD
160.46
Hotels, Restaurants & Leisure Industry
- Max
- 64.12
- Q3
- 27.55
- Median
- 7.10
- Q1
- 2.58
- Min
- 0.82
At 160.46, MCD’s P/B Ratio is at an extreme premium to the Hotels, Restaurants & Leisure industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.
Valuation at a Glance
| Symbol | AMZN | MCD |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 32.28 | 22.74 |
| Price-to-Sales Ratio (TTM) | 3.95 | 7.24 |
| Price-to-Book Ratio (MRQ) | 5.07 | 160.46 |
| Price-to-Free Cash Flow Ratio (TTM) | 186.71 | 27.10 |