Which has the lower trailing P/E, HD or MCD?

MCD has the lower trailing P/E: HD trades at 21.61 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, HD or MCD?

Over the past five years, MCD grew revenue faster — HD at a 3.21% CAGR versus MCD at 4.96%.

Does HD or MCD pay a bigger dividend?

HD yields 3.03% and MCD yields 2.94% based on trailing dividends and the latest price.

Is HD or MCD more profitable?

MCD runs the higher net margin — HD at 8.41% versus MCD at 31.72%.

How have HD and MCD total returns compared?

Over the past 10 years, HD delivered 11.81% and MCD delivered 10.88% annualized total return. Past performance doesn't predict future results.

The Home Depot, Inc. (HD) vs McDonald's Corporation (MCD)

A side-by-side comparison of The Home Depot, Inc. and McDonald's Corporation across valuation, profitability, dividends, and growth — built entirely from reported fundamentals, as of September 11, 2026. Differences are shown without an overall score or investment verdict.

The Home Depot, Inc.

$307.85B

$308.74Consumer CyclicalDelayed quote: Sep 11, 2026, 4:00 PM EDT

MCD

McDonald's Corporation

$179.42B

$252.53Consumer CyclicalDelayed quote: Sep 11, 2026, 4:00 PM EDT

Total return — HD vs MCD

growth of $100 · dividends reinvested · last 10y

HD +207.7% (+11.9%/yr)MCD +176.4% (+10.7%/yr)HD compounded faster over this window

HD MCD

HD vs MCD: by the numbers

•HD is the larger company ($307.85B vs $179.42B market cap).
•MCD trades at the lower trailing earnings multiple (20.51 vs 21.61 P/E), one valuation lens rather than an overall verdict.
•MCD converts more revenue to profit (31.72% vs 8.41% net margin).
•MCD grew revenue faster over the past five years (4.96% vs 3.21% CAGR).
•HD pays the higher dividend yield (3.03% vs 2.94%).

Metrics side by side

Valuation

Metric	HD	MCD
P/E ratio	21.61	20.51
Forward P/E	20.57	19.55
P/S ratio	1.82	6.48
P/B ratio	18.53	N/A
EV / EBITDA	14.80	15.63
FCF yield	4.90%	4.33%

Profitability

Metric	HD	MCD
Gross margin	33.21%	57.39%
Operating margin	12.43%	45.84%
Net margin	8.41%	31.72%
ROE	85.62%	N/A
ROIC	18.80%	17.85%

Dividends

Metric	HD	MCD
Dividend yield	3.03%	2.94%
Payout ratio	64.80%	60.44%

Growth (annualized)

Metric	HD	MCD
Revenue CAGR (5Y)	3.21%	4.96%
EPS CAGR (5Y)	-2.18%	13.58%
FCF CAGR (5Y)	-2.52%	1.84%
Total return CAGR (5Y)	0.90%	3.52%

Frequently asked

Which has the lower trailing P/E, HD or MCD?: MCD has the lower trailing P/E: HD trades at 21.61 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, HD or MCD?: Over the past five years, MCD grew revenue faster — HD at a 3.21% CAGR versus MCD at 4.96%.
Does HD or MCD pay a bigger dividend?: HD yields 3.03% and MCD yields 2.94% based on trailing dividends and the latest price.
Is HD or MCD more profitable?: MCD runs the higher net margin — HD at 8.41% versus MCD at 31.72%.
How have HD and MCD total returns compared?: Over the past 10 years, HD delivered 11.81% and MCD delivered 10.88% annualized total return. Past performance doesn't predict future results.

Go deeper

Full HD analysis Full MCD analysis Interactive comparison tool

Dig into the metrics

Home Depot P/E ratio McDonald's P/E ratio Home Depot dividend yield McDonald's dividend yield Home Depot ROE McDonald's ROE Home Depot operating margin McDonald's operating margin Home Depot revenue growth McDonald's revenue growth Home Depot free cash flow McDonald's free cash flow

Home Depot & McDonald's appear in these rankings

Highest Dividend Yield Stocks 25+ Year Dividend Growers Highest ROE Stocks Highest ROIC Stocks

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 11, 2026.