HD vs. MCD: A Head-to-Head Stock Comparison
Here’s a clear look at HD and MCD, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | HD | MCD |
|---|---|---|
| Company Name | The Home Depot, 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 | Specialty Retail | Hotels, Restaurants & Leisure |
| GICS Sub-Industry | Home Improvement Retail | Restaurants |
| Market Capitalization | 310.16 billion USD | 195.10 billion USD |
| Currency | USD | USD |
| Exchange | NYSE | NYSE |
| Listing Date | September 22, 1981 | July 5, 1966 |
| Security Type | Common Stock | Common Stock |
HD’s market capitalization (310.16 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 HD 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 | HD | MCD |
|---|---|---|
| 5-Day Price Return | -1.27% | -3.71% |
| 13-Week Price Return | -19.15% | -16.07% |
| 26-Week Price Return | -17.70% | -7.35% |
| 52-Week Price Return | -14.15% | -12.46% |
| Month-to-Date Return | -5.29% | -6.47% |
| Year-to-Date Return | -9.50% | -10.15% |
| 10-Day Avg. Volume | 4.86M | 4.66M |
| 3-Month Avg. Volume | 4.17M | 3.41M |
| 3-Month Volatility | 27.60% | 18.51% |
| Beta | 0.99 | 0.43 |
HD’s beta of 0.99 points to significantly higher volatility compared to MCD (beta: 0.43), suggesting HD has greater potential for both gains and losses relative to market movements.
Profitability
Return on Equity (TTM)
HD
130.02%
Specialty Retail Industry
- Max
- 89.51%
- Q3
- 44.35%
- Median
- 17.23%
- Q1
- 3.67%
- Min
- -36.11%
HD’s Return on Equity of 130.02% is exceptionally high, placing it well beyond the typical range for the Specialty Retail industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.
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)
HD
8.60%
Specialty Retail Industry
- Max
- 16.16%
- Q3
- 7.93%
- Median
- 3.27%
- Q1
- 0.62%
- Min
- -9.03%
A Net Profit Margin of 8.60% places HD in the upper quartile for the Specialty 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)
HD
12.68%
Specialty Retail Industry
- Max
- 25.31%
- Q3
- 11.80%
- Median
- 4.98%
- Q1
- 1.97%
- Min
- -7.21%
An Operating Profit Margin of 12.68% places HD in the upper quartile for the Specialty Retail industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
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 | HD | MCD |
|---|---|---|
| Return on Equity (TTM) | 130.02% | 95.13% |
| Return on Assets (TTM) | 13.79% | 14.51% |
| Net Profit Margin (TTM) | 8.60% | 31.85% |
| Operating Profit Margin (TTM) | 12.68% | 46.09% |
| Gross Profit Margin (TTM) | 33.32% | 57.41% |
Financial Strength
Current Ratio (MRQ)
HD
1.06
Specialty Retail Industry
- Max
- 2.49
- Q3
- 1.66
- Median
- 1.32
- Q1
- 1.01
- Min
- 0.45
HD’s Current Ratio of 1.06 aligns with the median group of the Specialty 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)
HD
4.35
Specialty Retail Industry
- Max
- 4.77
- Q3
- 2.52
- Median
- 0.63
- Q1
- 0.00
- Min
- 0.00
HD’s leverage is in the upper quartile of the Specialty Retail industry, with a Debt-to-Equity Ratio of 4.35. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.
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)
HD
9.13
Specialty Retail Industry
- Max
- 79.22
- Q3
- 35.18
- Median
- 5.99
- Q1
- 1.72
- Min
- -45.33
HD’s Interest Coverage Ratio of 9.13 is positioned comfortably within the norm for the Specialty Retail industry, indicating a standard and healthy capacity to cover its interest payments.
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 | HD | MCD |
|---|---|---|
| Current Ratio (MRQ) | 1.06 | 0.95 |
| Quick Ratio (MRQ) | 0.26 | 0.95 |
| Debt-to-Equity Ratio (MRQ) | 4.35 | 40.64 |
| Interest Coverage Ratio (TTM) | 9.13 | 9.07 |
Growth
Revenue Growth
Revenue Growth at a Glance
| Symbol | HD | MCD |
|---|---|---|
| Revenue Growth (MRQ vs Prior YoY) | -3.79% | 9.72% |
| Revenue Growth (TTM vs Prior YoY) | 3.24% | 3.73% |
| 3-Year Revenue CAGR | 1.52% | 5.06% |
| 5-Year Revenue CAGR | 4.51% | 6.96% |
EPS Growth
EPS Growth at a Glance
| Symbol | HD | MCD |
|---|---|---|
| EPS Growth (MRQ vs Prior YoY) | -14.13% | 8.04% |
| EPS Growth (TTM vs Prior YoY) | -4.52% | 4.90% |
| 3-Year EPS CAGR | -5.18% | 12.78% |
| 5-Year EPS CAGR | 3.58% | 13.64% |
Dividend
Dividend Yield (TTM)
HD
2.93%
Specialty Retail Industry
- Max
- 4.34%
- Q3
- 2.15%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 2.93%, HD offers a more attractive income stream than most of its peers in the Specialty Retail industry, signaling a strong commitment to shareholder returns.
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)
HD
64.65%
Specialty Retail Industry
- Max
- 74.93%
- Q3
- 32.41%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
HD’s Dividend Payout Ratio of 64.65% is in the upper quartile for the Specialty Retail 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.
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 | HD | MCD |
|---|---|---|
| Dividend Yield (TTM) | 2.93% | 2.63% |
| Dividend Payout Ratio (TTM) | 64.65% | 59.73% |
Valuation
Price-to-Earnings Ratio (TTM)
HD
22.08
Specialty Retail Industry
- Max
- 46.03
- Q3
- 31.44
- Median
- 22.08
- Q1
- 12.25
- Min
- 1.98
HD’s P/E Ratio of 22.08 is within the middle range for the Specialty Retail industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
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)
HD
1.90
Specialty Retail Industry
- Max
- 3.99
- Q3
- 1.81
- Median
- 0.56
- Q1
- 0.32
- Min
- 0.11
HD’s P/S Ratio of 1.90 is in the upper echelon for the Specialty 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)
HD
29.38
Specialty Retail Industry
- Max
- 23.66
- Q3
- 12.18
- Median
- 3.31
- Q1
- 1.62
- Min
- 0.55
At 29.38, HD’s P/B Ratio is at an extreme premium to the Specialty Retail 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.
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 | HD | MCD |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 22.08 | 22.74 |
| Price-to-Sales Ratio (TTM) | 1.90 | 7.24 |
| Price-to-Book Ratio (MRQ) | 29.38 | 160.46 |
| Price-to-Free Cash Flow Ratio (TTM) | 24.72 | 27.10 |