MCD vs. TJX: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at MCD and TJX, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | MCD | TJX |
|---|---|---|
| Company Name | McDonald's Corporation | The TJX Companies, Inc. |
| Country | United States | United States |
| GICS Sector | Consumer Discretionary | Consumer Discretionary |
| GICS Industry | Hotels, Restaurants & Leisure | Specialty Retail |
| Market Capitalization | 223.42 billion USD | 154.26 billion USD |
| Exchange | NYSE | NYSE |
| Listing Date | July 5, 1966 | June 26, 1987 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of MCD and TJX 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 | TJX |
|---|---|---|
| 5-Day Price Return | 1.34% | 4.00% |
| 13-Week Price Return | -2.54% | 2.40% |
| 26-Week Price Return | 0.99% | 9.87% |
| 52-Week Price Return | 8.88% | 22.92% |
| Month-to-Date Return | 4.34% | 11.03% |
| Year-to-Date Return | 8.00% | 14.45% |
| 10-Day Avg. Volume | 3.35M | 5.87M |
| 3-Month Avg. Volume | 3.50M | 5.29M |
| 3-Month Volatility | 15.56% | 17.75% |
| Beta | 0.51 | 0.92 |
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.
TJX
58.81%
Specialty Retail Industry
- Max
- 61.19%
- Q3
- 37.24%
- Median
- 18.81%
- Q1
- 8.92%
- Min
- -13.03%
In the upper quartile for the Specialty Retail industry, TJX’s Return on Equity of 58.81% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
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.
TJX
8.47%
Specialty Retail Industry
- Max
- 21.28%
- Q3
- 10.68%
- Median
- 6.08%
- Q1
- 2.43%
- Min
- -4.54%
TJX’s Net Profit Margin of 8.47% 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.
TJX
11.02%
Specialty Retail Industry
- Max
- 33.35%
- Q3
- 15.84%
- Median
- 9.34%
- Q1
- 3.83%
- Min
- -8.97%
TJX’s Operating Profit Margin of 11.02% 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 | TJX |
|---|---|---|
| Return on Equity (TTM) | 95.13% | 58.81% |
| Return on Assets (TTM) | 14.78% | 15.26% |
| Net Profit Margin (TTM) | 32.21% | 8.47% |
| Operating Profit Margin (TTM) | 45.80% | 11.02% |
| Gross Profit Margin (TTM) | 57.00% | 30.48% |
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.
TJX
1.16
Specialty Retail Industry
- Max
- 2.83
- Q3
- 1.89
- Median
- 1.39
- Q1
- 1.11
- Min
- 0.64
TJX’s Current Ratio of 1.16 aligns with the median group of the Specialty Retail industry, indicating that its short-term liquidity is in line with its sector peers.
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.
TJX
0.34
Specialty Retail Industry
- Max
- 3.02
- Q3
- 1.57
- Median
- 0.64
- Q1
- 0.20
- Min
- 0.00
TJX’s Debt-to-Equity Ratio of 0.34 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.
TJX
773.67
Specialty Retail Industry
- Max
- 48.12
- Q3
- 35.95
- Median
- 14.13
- Q1
- 3.61
- Min
- -36.00
With an Interest Coverage Ratio of 773.67, TJX demonstrates a superior capacity to service its debt, placing it well above the typical range for the Specialty Retail industry. This stems from either robust earnings or a conservative debt load.
Financial Strength at a Glance
| Symbol | MCD | TJX |
|---|---|---|
| Current Ratio (MRQ) | 1.30 | 1.16 |
| Quick Ratio (MRQ) | 1.03 | 0.45 |
| Debt-to-Equity Ratio (MRQ) | 40.64 | 0.34 |
| Interest Coverage Ratio (TTM) | 9.26 | 773.67 |
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.
TJX
1.09%
Specialty Retail Industry
- Max
- 6.53%
- Q3
- 2.69%
- Median
- 1.08%
- Q1
- 0.00%
- Min
- 0.00%
TJX’s Dividend Yield of 1.09% 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.
TJX
35.03%
Specialty Retail Industry
- Max
- 165.81%
- Q3
- 80.94%
- Median
- 31.61%
- Q1
- 0.00%
- Min
- 0.00%
TJX’s Dividend Payout Ratio of 35.03% 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 | TJX |
|---|---|---|
| Dividend Yield (TTM) | 2.24% | 1.09% |
| Dividend Payout Ratio (TTM) | 59.51% | 35.03% |
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.
TJX
32.07
Specialty Retail Industry
- Max
- 48.56
- Q3
- 29.15
- Median
- 22.00
- Q1
- 15.46
- Min
- 7.95
A P/E Ratio of 32.07 places TJX in the upper quartile for the Specialty Retail industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.
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.
TJX
2.72
Specialty Retail Industry
- Max
- 5.08
- Q3
- 2.69
- Median
- 1.23
- Q1
- 0.48
- Min
- 0.09
TJX’s P/S Ratio of 2.72 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.
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.
TJX
16.93
Specialty Retail Industry
- Max
- 16.93
- Q3
- 7.98
- Median
- 3.69
- Q1
- 1.79
- Min
- 0.21
TJX’s P/B Ratio of 16.93 is in the upper tier for the Specialty Retail industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.
Valuation at a Glance
| Symbol | MCD | TJX |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 26.59 | 32.07 |
| Price-to-Sales Ratio (TTM) | 8.56 | 2.72 |
| Price-to-Book Ratio (MRQ) | 160.46 | 16.93 |
| Price-to-Free Cash Flow Ratio (TTM) | 32.36 | 36.90 |