Alibaba Group Holding Limited (BABA) vs McDonald's Corporation (MCD)
A side-by-side comparison of Alibaba Group Holding Limited and McDonald's Corporation across valuation, profitability, dividends, and growth — built entirely from reported fundamentals, as of September 10, 2026. Differences are shown without an overall score or investment verdict.
BABA
Alibaba Group Holding Limited
$109.30Consumer CyclicalDelayed quote: Sep 11, 2026, 4:01 PM EDT
MCD
McDonald's Corporation
$252.53Consumer CyclicalDelayed quote: Sep 11, 2026, 4:00 PM EDT
Total return — BABA vs MCD
growth of $100 · dividends reinvested · last 10yBABA +12.7% (+1.2%/yr)MCD +177.0% (+10.7%/yr)MCD compounded faster over this window
BABA MCD
BABA vs MCD: by the numbers
- •BABA is the larger company ($261.98B vs $179.42B market cap).
- •MCD trades at the lower trailing earnings multiple (20.51 vs 25.88 P/E), one valuation lens rather than an overall verdict.
- •MCD converts more revenue to profit (31.72% vs 7.02% net margin).
- •BABA grew revenue faster over the past five years (5.11% vs 4.96% CAGR).
- •MCD pays the higher dividend yield (2.94% vs 0.97%).
Metrics side by side
Valuation
| Metric | BABA | MCD |
|---|---|---|
| P/E ratio | 25.88 | 20.51 |
| Forward P/E | N/A | 19.55 |
| P/S ratio | 1.74 | 6.48 |
| P/B ratio | 1.70 | N/A |
| EV / EBITDA | 31.14 | 15.63 |
| FCF yield | N/A | 4.33% |
Profitability
| Metric | BABA | MCD |
|---|---|---|
| Gross margin | 38.12% | 57.39% |
| Operating margin | 4.23% | 45.84% |
| Net margin | 7.02% | 31.72% |
| ROE | 6.83% | N/A |
| ROIC | 1.99% | 17.85% |
Dividends
| Metric | BABA | MCD |
|---|---|---|
| Dividend yield | 0.97% | 2.94% |
| Payout ratio | 24.87% | 60.44% |
Growth (annualized)
| Metric | BABA | MCD |
|---|---|---|
| Revenue CAGR (5Y) | 5.11% | 4.96% |
| EPS CAGR (5Y) | -4.87% | 13.58% |
| FCF CAGR (5Y) | -62.38% | 1.84% |
| Total return CAGR (5Y) | -7.24% | 3.52% |
Frequently asked
- Which has the lower trailing P/E, BABA or MCD?
- MCD has the lower trailing P/E: BABA trades at 25.88 and MCD at 20.51. P/E is one valuation measure and does not by itself establish which business is cheaper.
- Which has grown faster, BABA or MCD?
- Over the past five years, BABA grew revenue faster — BABA at a 5.11% CAGR versus MCD at 4.96%.
- Does BABA or MCD pay a bigger dividend?
- BABA yields 0.97% and MCD yields 2.94% based on trailing dividends and the latest price.
- Is BABA or MCD more profitable?
- MCD runs the higher net margin — BABA at 7.02% versus MCD at 31.72%.
- How have BABA and MCD total returns compared?
- Over the past 10 years, BABA delivered 1.49% and MCD delivered 10.88% annualized total return. Past performance doesn't predict future results.
Go deeper
Dig into the metrics
Alibaba Group P/E ratioMcDonald's P/E ratioAlibaba Group dividend yieldMcDonald's dividend yieldAlibaba Group ROEMcDonald's ROEAlibaba Group operating marginMcDonald's operating marginAlibaba Group revenue growthMcDonald's revenue growthAlibaba Group free cash flowMcDonald's free cash flow
Alibaba Group & McDonald's appear in these rankings
Figures are sourced from reported fundamentals and the latest end-of-day price. This comparison is informational only and is not investment advice. Past performance does not predict future results. See our methodology. Compiled by TGMCharts Research · data verified September 10, 2026.