Amazon.com Inc (AMZN) vs McDonald’s Corporation (MCD)

A side-by-side look at how these two compare on valuation, profitability and shareholder returns.

Amazon.com vs McDonald’s at a glance

Both companies operate in the Consumer Discretionary sector, so these figures are broadly like-for-like.

MetricAMZNMCD
Market cap$2.85T$194.59B
Price$261.06$268.10
P/E ratio (TTM)32.3125.36
P/B ratio (MRQ)6.10
P/S ratio (TTM)3.58.08
Revenue growth (1Y)12.38%3.72%
Return on equity (TTM)18.89%-478.38%
Return on invested capital (TTM)11.37%25.05%
Gross margin (TTM)47.25%57.35%
Net margin (TTM)17.44%31.62%
Dividend yield (TTM)-2.73%

How they differ

Amazon.com is the larger company at $2.85T versus $194.59B — about 14.6x the size.

On trailing earnings, McDonald’s is the cheaper of the two at 25.36 against 32.31 for Amazon.com.

On sales, Amazon.com is the cheaper of the two at 3.5 against 8.08 for McDonald’s.

Amazon.com leads on revenue growth over the past year, 12.38% against 3.72%.

McDonald’s leads on return on invested capital, 25.05% against 11.37%.

McDonald’s leads on gross margin, 57.35% against 47.25%.

Go deeper

Ratios describe the past. Whether either is worth owning depends on what you pay today.

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