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MCD vs. TM: A Head-to-Head Stock Comparison

Here’s a clear look at MCD and TM, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

SymbolMCDTM
Company NameMcDonald's CorporationToyota Motor Corporation
CountryUnited StatesJapan
GICS SectorConsumer DiscretionaryConsumer Discretionary
GICS Industry GroupConsumer ServicesAutomobiles & Components
GICS IndustryHotels, Restaurants & LeisureAutomobiles
GICS Sub-IndustryRestaurantsAutomobile Manufacturers
Market Capitalization195.10 billion USD217.64 billion USD
CurrencyUSDUSD
ExchangeNYSENYSE
Listing DateJuly 5, 1966March 17, 1980
Security TypeCommon StockADR

MCD is a standard domestic listing, while TM trades as an American Depositary Receipt (ADR), offering U.S. investors access to its foreign-listed shares.

MCD’s market capitalization stands at 195.10 billion USD, while TM’s is 217.64 billion USD, indicating their market valuations are broadly comparable.

TM is an American Depositary Receipt (ADR), allowing U.S. investors direct exposure to its non-U.S. operations. MCD, on the other hand, is a domestic entity.

Historical Performance

This chart compares the performance of MCD and TM 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.

MCD
TM
Loading price history…
MCD vs. TM: Growth of a $10,000 investment over the past five years.

Historical Performance at a Glance

SymbolMCDTM
5-Day Price Return-3.71%-5.06%
13-Week Price Return-16.07%-18.09%
26-Week Price Return-7.35%-7.15%
52-Week Price Return-12.46%14.38%
Month-to-Date Return-6.47%-5.06%
Year-to-Date Return-10.15%-14.48%
10-Day Avg. Volume4.66M31.76M
3-Month Avg. Volume3.41M23.34M
3-Month Volatility18.51%34.76%
Beta0.431.45

TM carries a higher beta at 1.45, indicating it’s more sensitive to market moves, while MCD (beta: 0.43) exhibits greater stability.

Profitability

Return on Equity (TTM)

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.

TM

10.10%

Automobiles Industry
Max
43.18%
Q3
7.01%
Median
3.39%
Q1
-18.91%
Min
-18.91%

In the upper quartile for the Automobiles industry, TM’s Return on Equity of 10.10% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

MCD vs. TM: A comparison of their Return on Equity (TTM) against their respective Hotels, Restaurants & Leisure and Automobiles industry benchmarks.

Net Profit Margin (TTM)

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.

TM

7.59%

Automobiles Industry
Max
22.35%
Q3
3.95%
Median
1.37%
Q1
-14.50%
Min
-14.50%

A Net Profit Margin of 7.59% places TM in the upper quartile for the Automobiles industry, signifying strong profitability and more effective cost management than most of its peers.

MCD vs. TM: A comparison of their Net Profit Margin (TTM) against their respective Hotels, Restaurants & Leisure and Automobiles industry benchmarks.

Operating Profit Margin (TTM)

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.

TM

7.43%

Automobiles Industry
Max
29.52%
Q3
5.00%
Median
0.93%
Q1
-12.05%
Min
-12.05%

An Operating Profit Margin of 7.43% places TM in the upper quartile for the Automobiles industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

MCD vs. TM: A comparison of their Operating Profit Margin (TTM) against their respective Hotels, Restaurants & Leisure and Automobiles industry benchmarks.

Profitability at a Glance

SymbolMCDTM
Return on Equity (TTM)95.13%10.10%
Return on Assets (TTM)14.51%3.86%
Net Profit Margin (TTM)31.85%7.59%
Operating Profit Margin (TTM)46.09%7.43%
Gross Profit Margin (TTM)57.41%16.70%

Financial Strength

Current Ratio (MRQ)

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.

TM

1.27

Automobiles Industry
Max
2.30
Q3
2.04
Median
1.36
Q1
1.07
Min
0.43

TM’s Current Ratio of 1.27 aligns with the median group of the Automobiles industry, indicating that its short-term liquidity is in line with its sector peers.

MCD vs. TM: A comparison of their Current Ratio (MRQ) against their respective Hotels, Restaurants & Leisure and Automobiles industry benchmarks.

Debt-to-Equity Ratio (MRQ)

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.

TM

1.08

Automobiles Industry
Max
2.62
Q3
2.04
Median
1.06
Q1
0.56
Min
0.11

TM’s Debt-to-Equity Ratio of 1.08 is typical for the Automobiles industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

MCD vs. TM: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Hotels, Restaurants & Leisure and Automobiles industry benchmarks.

Interest Coverage Ratio (TTM)

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.

TM

--

Automobiles Industry
Max
75.55
Q3
38.91
Median
-4.07
Q1
-12.63
Min
-19.30

Interest Coverage Ratio data for TM is currently unavailable.

MCD vs. TM: A comparison of their Interest Coverage Ratio (TTM) against their respective Hotels, Restaurants & Leisure and Automobiles industry benchmarks.

Financial Strength at a Glance

SymbolMCDTM
Current Ratio (MRQ)0.951.27
Quick Ratio (MRQ)0.951.12
Debt-to-Equity Ratio (MRQ)40.641.08
Interest Coverage Ratio (TTM)9.07--

Growth

Revenue Growth

MCD vs. TM: A comparison of their Revenue Growth across different time periods.

Revenue Growth at a Glance

SymbolMCDTM
Revenue Growth (MRQ vs Prior YoY)9.72%1.89%
Revenue Growth (TTM vs Prior YoY)3.73%5.51%
3-Year Revenue CAGR5.06%10.91%
5-Year Revenue CAGR6.96%13.24%

EPS Growth

MCD vs. TM: A comparison of their EPS Growth across different time periods.

EPS Growth at a Glance

SymbolMCDTM
EPS Growth (MRQ vs Prior YoY)8.04%23.24%
EPS Growth (TTM vs Prior YoY)4.90%-18.00%
3-Year EPS CAGR12.78%18.05%
5-Year EPS CAGR13.64%13.31%

Dividend

Dividend Yield (TTM)

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.

TM

3.26%

Automobiles Industry
Max
7.99%
Q3
3.26%
Median
0.97%
Q1
0.00%
Min
0.00%

TM’s Dividend Yield of 3.26% is consistent with its peers in the Automobiles industry, providing a dividend return that is standard for its sector.

MCD vs. TM: A comparison of their Dividend Yield (TTM) against their respective Hotels, Restaurants & Leisure and Automobiles industry benchmarks.

Dividend Payout Ratio (TTM)

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.

TM

59.03%

Automobiles Industry
Max
94.23%
Q3
44.69%
Median
9.69%
Q1
0.00%
Min
0.00%

TM’s Dividend Payout Ratio of 59.03% is in the upper quartile for the Automobiles 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 vs. TM: A comparison of their Dividend Payout Ratio (TTM) against their respective Hotels, Restaurants & Leisure and Automobiles industry benchmarks.

Dividend at a Glance

SymbolMCDTM
Dividend Yield (TTM)2.63%3.26%
Dividend Payout Ratio (TTM)59.73%59.03%

Valuation

Price-to-Earnings Ratio (TTM)

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.

TM

9.87

Automobiles Industry
Max
34.14
Q3
34.14
Median
21.57
Q1
9.96
Min
8.03

In the lower quartile for the Automobiles industry, TM’s P/E Ratio of 9.87 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.

MCD vs. TM: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Hotels, Restaurants & Leisure and Automobiles industry benchmarks.

Price-to-Sales Ratio (TTM)

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.

TM

0.75

Automobiles Industry
Max
3.21
Q3
2.02
Median
0.75
Q1
0.38
Min
0.23

TM’s P/S Ratio of 0.75 aligns with the market consensus for the Automobiles industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

MCD vs. TM: A comparison of their Price-to-Sales Ratio (TTM) against their respective Hotels, Restaurants & Leisure and Automobiles industry benchmarks.

Price-to-Book Ratio (MRQ)

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.

TM

1.24

Automobiles Industry
Max
18.12
Q3
12.00
Median
1.54
Q1
1.07
Min
0.34

TM’s P/B Ratio of 1.24 is within the conventional range for the Automobiles 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 vs. TM: A comparison of their Price-to-Book Ratio (MRQ) against their respective Hotels, Restaurants & Leisure and Automobiles industry benchmarks.

Valuation at a Glance

SymbolMCDTM
Price-to-Earnings Ratio (TTM)22.749.87
Price-to-Sales Ratio (TTM)7.240.75
Price-to-Book Ratio (MRQ)160.461.24
Price-to-Free Cash Flow Ratio (TTM)27.1044.76