McDonald's vs Walt Disney Which Performs Better?

McDonald's and Walt Disney are two iconic companies with global reach and strong brand recognition. Both boast a long history of success and have established themselves as leaders in their respective industries. When comparing their stocks, investors may consider factors such as revenue growth, profitability, dividend yields, and market trends. McDonald's is known for its stable and consistent performance, while Walt Disney's diverse portfolio of entertainment assets may offer potential for growth. Ultimately, both stocks present unique opportunities for investors to consider.

McDonald's or Walt Disney?

When comparing McDonald's and Walt Disney, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between McDonald's and Walt Disney.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. McDonald's has a dividend yield of 2.29%, while Walt Disney has a dividend yield of 0.4%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. McDonald's reports a 5-year dividend growth of 8.26% year and a payout ratio of 58.34%. On the other hand, Walt Disney reports a 5-year dividend growth of 0.00% year and a payout ratio of 27.47%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with McDonald's P/E ratio at 25.78 and Walt Disney's P/E ratio at 41.35. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. McDonald's P/B ratio is -41.06 while Walt Disney's P/B ratio is 2.04.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, McDonald's has seen a 5-year revenue growth of 0.30%, while Walt Disney's is 0.23%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with McDonald's's ROE at -168.78% and Walt Disney's ROE at 4.96%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $295.75 for McDonald's and $113.30 for Walt Disney. Over the past year, McDonald's's prices ranged from $243.53 to $317.90, with a yearly change of 30.54%. Walt Disney's prices fluctuated between $83.91 and $123.74, with a yearly change of 47.47%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.