MCD vs. CMG, PDD, BABA, LOW, BKNG, TJX, SBUX, MELI, TGT, and CVS
Should you be buying McDonald's stock or one of its competitors? The main competitors of McDonald's include Chipotle Mexican Grill (CMG), PDD (PDD), Alibaba Group (BABA), Lowe's Companies (LOW), Booking (BKNG), TJX Companies (TJX), Starbucks (SBUX), MercadoLibre (MELI), Target (TGT), and CVS Health (CVS). These companies are all part of the "retail/wholesale" sector.
Chipotle Mexican Grill (NYSE:CMG) and McDonald's (NYSE:MCD) are both large-cap retail/wholesale companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, institutional ownership, risk, media sentiment, dividends, analyst recommendations, community ranking and profitability.
Chipotle Mexican Grill currently has a consensus target price of $3,137.12, suggesting a potential downside of 2.37%. McDonald's has a consensus target price of $317.74, suggesting a potential upside of 16.65%. Given Chipotle Mexican Grill's stronger consensus rating and higher probable upside, analysts clearly believe McDonald's is more favorable than Chipotle Mexican Grill.
In the previous week, McDonald's had 80 more articles in the media than Chipotle Mexican Grill. MarketBeat recorded 95 mentions for McDonald's and 15 mentions for Chipotle Mexican Grill. Chipotle Mexican Grill's average media sentiment score of 0.39 beat McDonald's' score of 0.39 indicating that McDonald's is being referred to more favorably in the news media.
McDonald's has higher revenue and earnings than Chipotle Mexican Grill. McDonald's is trading at a lower price-to-earnings ratio than Chipotle Mexican Grill, indicating that it is currently the more affordable of the two stocks.
McDonald's has a net margin of 33.36% compared to McDonald's' net margin of 12.70%. McDonald's' return on equity of 43.74% beat Chipotle Mexican Grill's return on equity.
Chipotle Mexican Grill has a beta of 1.26, suggesting that its stock price is 26% more volatile than the S&P 500. Comparatively, McDonald's has a beta of 0.71, suggesting that its stock price is 29% less volatile than the S&P 500.
McDonald's received 371 more outperform votes than Chipotle Mexican Grill when rated by MarketBeat users. Likewise, 71.98% of users gave McDonald's an outperform vote while only 59.88% of users gave Chipotle Mexican Grill an outperform vote.
91.3% of Chipotle Mexican Grill shares are held by institutional investors. Comparatively, 70.3% of McDonald's shares are held by institutional investors. 1.0% of Chipotle Mexican Grill shares are held by company insiders. Comparatively, 0.2% of McDonald's shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Summary
McDonald's beats Chipotle Mexican Grill on 10 of the 18 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding MCD and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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