Alibaba Group Holding Limited (BABA) vs McDonald's Corporation (MCD)
MCD leads on 9 of 14 compared metrics, though BABA is the cheaper stock.
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 June 13, 2026. The ● marks the stronger figure on each row (cheaper multiple, higher margin/return).
BABA
Alibaba Group Holding Limited
$112.82Consumer Cyclical
MCD
McDonald's Corporation
$284.81Consumer Cyclical
Total return — BABA vs MCD
growth of $100 · last 12yBABA +20.2%MCD +201.8%MCD compounded faster
BABA MCD
BABA vs MCD: by the numbers
- •BABA is the larger company ($270.67B vs $202.36B market cap).
- •BABA trades at the lower earnings multiple (18.22 vs 23.48 P/E).
- •MCD converts more revenue to profit (31.62% vs 10.09% net margin).
- •MCD grew revenue faster over the past five years (6.95% vs 6.31% CAGR).
- •MCD pays the higher dividend yield (2.58% vs 0.93%).
Which is better, BABA or MCD?
Metric tally: BABA 5 · MCD 9It depends on what you're optimizing for:
ValueBABA(lower P/E)
GrowthMCD(faster 5Y revenue CAGR)
IncomeMCD(higher dividend yield)
QualityMCD(higher ROIC)
Valuation
| Metric | BABA | MCD |
|---|---|---|
| P/E ratio | 18.22● | 23.48 |
| Forward P/E | — | 20.06 |
| P/S ratio | 1.87● | 7.40 |
| P/B ratio | 1.77 | — |
| PEG ratio | 0.23● | 5.30 |
| EV / EBITDA | 13.88● | 17.22 |
| FCF yield | — | 3.46% |
Profitability
| Metric | BABA | MCD |
|---|---|---|
| Gross margin | 39.77% | 57.35%● |
| Operating margin | 5.78% | 46.01%● |
| Net margin | 10.09% | 31.62%● |
| ROE | 9.58%● | -478.38% |
| ROIC | 3.17% | 17.44%● |
Dividends
| Metric | BABA | MCD |
|---|---|---|
| Dividend yield | 0.93% | 2.58%● |
| Payout ratio | 15.89% | 61.25% |
Growth (annualized)
| Metric | BABA | MCD |
|---|---|---|
| Revenue CAGR (5Y) | 6.31% | 6.95%● |
| EPS CAGR (5Y) | -4.87% | 13.58%● |
| FCF CAGR (5Y) | -62.38% | 5.78%● |
| Total return CAGR (5Y) | -10.73% | 6.16%● |
Frequently asked
- Which is better, BABA or MCD?
- It depends on your goal. value: BABA (lower P/E); growth: MCD (faster 5Y revenue CAGR); income: MCD (higher dividend yield); quality: MCD (higher ROIC). Across all compared metrics, MCD leads 9 to 5.
- Is BABA or MCD cheaper?
- On trailing earnings, BABA is cheaper: BABA trades at a 18.22 P/E and MCD at 23.48.
- Which has grown faster, BABA or MCD?
- Over the past five years, MCD grew revenue faster — BABA at a 6.31% CAGR versus MCD at 6.95%.
- Does BABA or MCD pay a bigger dividend?
- BABA yields 0.93% and MCD yields 2.58% based on trailing dividends and the latest price.
- Is BABA or MCD more profitable?
- MCD runs the higher net margin — BABA at 10.09% versus MCD at 31.62%.
- Which has been the better investment, BABA or MCD?
- Over the past 10-year, MCD delivered the higher annualized total return — BABA at 4.68% versus MCD at 11.47%. 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 June 13, 2026.