MCD vs. PAG: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at MCD and PAG, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | MCD | PAG |
|---|---|---|
| Company Name | McDonald's Corporation | Penske Automotive Group, Inc. |
| Country | United States | United States |
| GICS Sector | Consumer Discretionary | Consumer Discretionary |
| GICS Industry | Hotels, Restaurants & Leisure | Specialty Retail |
| Market Capitalization | 222.24 billion USD | 12.44 billion USD |
| Exchange | NYSE | NYSE |
| Listing Date | July 5, 1966 | October 23, 1996 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of MCD and PAG 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 | MCD | PAG |
|---|---|---|
| 5-Day Price Return | -0.57% | 4.05% |
| 13-Week Price Return | -1.12% | 14.70% |
| 26-Week Price Return | 2.17% | 15.12% |
| 52-Week Price Return | 7.88% | 11.58% |
| Month-to-Date Return | 3.79% | 12.49% |
| Year-to-Date Return | 7.43% | 23.54% |
| 10-Day Avg. Volume | 3.22M | 0.20M |
| 3-Month Avg. Volume | 3.47M | 0.24M |
| 3-Month Volatility | 15.30% | 29.16% |
| Beta | 0.52 | 0.91 |
Profitability
Return on Equity (TTM)
MCD
95.13%
Hotels, Restaurants & Leisure Industry
- Max
- 83.01%
- Q3
- 39.51%
- Median
- 17.38%
- Q1
- 5.32%
- Min
- -45.92%
MCD’s Return on Equity of 95.13% is exceptionally high, placing it well beyond the typical range for the Hotels, Restaurants & Leisure industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.
PAG
17.87%
Specialty Retail Industry
- Max
- 61.19%
- Q3
- 37.24%
- Median
- 18.81%
- Q1
- 8.92%
- Min
- -13.03%
PAG’s Return on Equity of 17.87% is on par with the norm for the Specialty Retail industry, indicating its profitability relative to shareholder equity is typical for the sector.
Net Profit Margin (TTM)
MCD
32.21%
Hotels, Restaurants & Leisure Industry
- Max
- 26.45%
- Q3
- 14.67%
- Median
- 8.69%
- Q1
- 3.34%
- Min
- -11.30%
MCD’s Net Profit Margin of 32.21% 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.
PAG
3.13%
Specialty Retail Industry
- Max
- 21.28%
- Q3
- 10.68%
- Median
- 6.08%
- Q1
- 2.43%
- Min
- -4.54%
PAG’s Net Profit Margin of 3.13% is aligned with the median group of its peers in the Specialty Retail industry. This indicates its ability to convert revenue into profit is typical for the sector.
Operating Profit Margin (TTM)
MCD
45.80%
Hotels, Restaurants & Leisure Industry
- Max
- 38.76%
- Q3
- 21.15%
- Median
- 14.20%
- Q1
- 6.43%
- Min
- -14.56%
MCD’s Operating Profit Margin of 45.80% is exceptionally high, placing it well above the typical range for the Hotels, Restaurants & Leisure industry. This demonstrates outstanding efficiency in managing its core operations, which can be a result of strong pricing power or superior cost control.
PAG
4.47%
Specialty Retail Industry
- Max
- 33.35%
- Q3
- 15.84%
- Median
- 9.34%
- Q1
- 3.83%
- Min
- -8.97%
PAG’s Operating Profit Margin of 4.47% is around the midpoint for the Specialty Retail industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | MCD | PAG |
|---|---|---|
| Return on Equity (TTM) | 95.13% | 17.87% |
| Return on Assets (TTM) | 14.78% | 5.62% |
| Net Profit Margin (TTM) | 32.21% | 3.13% |
| Operating Profit Margin (TTM) | 45.80% | 4.47% |
| Gross Profit Margin (TTM) | 57.00% | 16.58% |
Financial Strength
Current Ratio (MRQ)
MCD
1.30
Hotels, Restaurants & Leisure Industry
- Max
- 2.68
- Q3
- 1.62
- Median
- 1.11
- Q1
- 0.74
- Min
- 0.19
MCD’s Current Ratio of 1.30 aligns with the median group of the Hotels, Restaurants & Leisure industry, indicating that its short-term liquidity is in line with its sector peers.
PAG
0.90
Specialty Retail Industry
- Max
- 2.83
- Q3
- 1.89
- Median
- 1.39
- Q1
- 1.11
- Min
- 0.64
PAG’s Current Ratio of 0.90 falls into the lower quartile for the Specialty Retail industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
Debt-to-Equity Ratio (MRQ)
MCD
40.64
Hotels, Restaurants & Leisure Industry
- Max
- 9.88
- Q3
- 4.54
- Median
- 1.52
- Q1
- 0.27
- 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.
PAG
1.07
Specialty Retail Industry
- Max
- 3.02
- Q3
- 1.57
- Median
- 0.64
- Q1
- 0.20
- Min
- 0.00
PAG’s Debt-to-Equity Ratio of 1.07 is typical for the Specialty Retail industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
Interest Coverage Ratio (TTM)
MCD
9.26
Hotels, Restaurants & Leisure Industry
- Max
- 26.88
- Q3
- 11.95
- Median
- 3.87
- Q1
- 1.19
- Min
- -11.84
MCD’s Interest Coverage Ratio of 9.26 is positioned comfortably within the norm for the Hotels, Restaurants & Leisure industry, indicating a standard and healthy capacity to cover its interest payments.
PAG
17.12
Specialty Retail Industry
- Max
- 48.12
- Q3
- 35.95
- Median
- 14.13
- Q1
- 3.61
- Min
- -36.00
PAG’s Interest Coverage Ratio of 17.12 is positioned comfortably within the norm for the Specialty Retail industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | MCD | PAG |
|---|---|---|
| Current Ratio (MRQ) | 1.30 | 0.90 |
| Quick Ratio (MRQ) | 1.03 | 0.21 |
| Debt-to-Equity Ratio (MRQ) | 40.64 | 1.07 |
| Interest Coverage Ratio (TTM) | 9.26 | 17.12 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
MCD
2.24%
Hotels, Restaurants & Leisure Industry
- Max
- 5.88%
- Q3
- 2.37%
- Median
- 0.68%
- Q1
- 0.00%
- Min
- 0.00%
MCD’s Dividend Yield of 2.24% is consistent with its peers in the Hotels, Restaurants & Leisure industry, providing a dividend return that is standard for its sector.
PAG
2.62%
Specialty Retail Industry
- Max
- 6.53%
- Q3
- 2.69%
- Median
- 1.08%
- Q1
- 0.00%
- Min
- 0.00%
PAG’s Dividend Yield of 2.62% is consistent with its peers in the Specialty Retail industry, providing a dividend return that is standard for its sector.
Dividend Payout Ratio (TTM)
MCD
59.51%
Hotels, Restaurants & Leisure Industry
- Max
- 127.31%
- Q3
- 56.79%
- Median
- 19.58%
- Q1
- 0.00%
- Min
- 0.00%
MCD’s Dividend Payout Ratio of 59.51% 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.
PAG
33.11%
Specialty Retail Industry
- Max
- 165.81%
- Q3
- 80.94%
- Median
- 31.61%
- Q1
- 0.00%
- Min
- 0.00%
PAG’s Dividend Payout Ratio of 33.11% is within the typical range for the Specialty Retail industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | MCD | PAG |
|---|---|---|
| Dividend Yield (TTM) | 2.24% | 2.62% |
| Dividend Payout Ratio (TTM) | 59.51% | 33.11% |
Valuation
Price-to-Earnings Ratio (TTM)
MCD
26.59
Hotels, Restaurants & Leisure Industry
- Max
- 59.44
- Q3
- 33.98
- Median
- 22.25
- Q1
- 15.53
- Min
- 7.61
MCD’s P/E Ratio of 26.59 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.
PAG
12.63
Specialty Retail Industry
- Max
- 48.56
- Q3
- 29.15
- Median
- 22.00
- Q1
- 15.46
- Min
- 7.95
In the lower quartile for the Specialty Retail industry, PAG’s P/E Ratio of 12.63 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.
Price-to-Sales Ratio (TTM)
MCD
8.56
Hotels, Restaurants & Leisure Industry
- Max
- 7.74
- Q3
- 3.88
- Median
- 2.05
- Q1
- 1.19
- Min
- 0.17
With a P/S Ratio of 8.56, MCD trades at a valuation that eclipses even the highest in the Hotels, Restaurants & Leisure industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
PAG
0.40
Specialty Retail Industry
- Max
- 5.08
- Q3
- 2.69
- Median
- 1.23
- Q1
- 0.48
- Min
- 0.09
In the lower quartile for the Specialty Retail industry, PAG’s P/S Ratio of 0.40 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.
Price-to-Book Ratio (MRQ)
MCD
160.46
Hotels, Restaurants & Leisure Industry
- Max
- 20.90
- Q3
- 9.78
- Median
- 4.29
- Q1
- 2.22
- Min
- 0.47
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.
PAG
2.03
Specialty Retail Industry
- Max
- 16.93
- Q3
- 7.98
- Median
- 3.69
- Q1
- 1.79
- Min
- 0.21
PAG’s P/B Ratio of 2.03 is within the conventional range for the Specialty 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.
Valuation at a Glance
| Symbol | MCD | PAG |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 26.59 | 12.63 |
| Price-to-Sales Ratio (TTM) | 8.56 | 0.40 |
| Price-to-Book Ratio (MRQ) | 160.46 | 2.03 |
| Price-to-Free Cash Flow Ratio (TTM) | 32.36 | 18.68 |