The Home Depot Inc (HD) vs McDonald’s Corporation (MCD)

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

The Home Depot vs McDonald’s at a glance

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

MetricHDMCD
Market cap$327.30B$188.56B
Price$330.19$265.00
P/E ratio (TTM)26.4825.36
P/B ratio (MRQ)29.260
P/S ratio (TTM)2.288.08
Revenue growth (1Y)3.24%3.72%
Return on equity (TTM)110.48%-478.38%
Return on invested capital (TTM)19.98%25.05%
Gross margin (TTM)33.21%57.35%
Net margin (TTM)8.41%31.62%
Dividend yield (TTM)2.84%2.82%

How they differ

The Home Depot is the larger company at $327.30B versus $188.56B — about 1.7x the size.

On trailing earnings, McDonald’s is the cheaper of the two at 25.36 against 26.48 for The Home Depot.

On sales, The Home Depot is the cheaper of the two at 2.28 against 8.08 for McDonald’s.

McDonald’s leads on revenue growth over the past year, 3.72% against 3.24%.

McDonald’s leads on return on invested capital, 25.05% against 19.98%.

McDonald’s leads on gross margin, 57.35% against 33.21%.

The Home Depot offers the higher yield at 2.84% against 2.82%.

Go deeper

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

Related comparisons

Other matchups involving The Home Depot or McDonald’s.

Explore the full comparison