Is HD or MCD cheaper?

On trailing earnings, HD is cheaper: HD trades at a 23.32 P/E and MCD at 23.48.

Which has grown faster, HD or MCD?

Over the past five years, MCD grew revenue faster — HD at a 3.34% CAGR versus MCD at 6.95%.

Does HD or MCD pay a bigger dividend?

HD yields 2.82% and MCD yields 2.58% 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 31.62%.

Which has been the better investment, HD or MCD?

Over the past 10-year, HD delivered the higher annualized total return — HD at 12.49% versus MCD at 11.47%. Past performance doesn't predict future results.

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

MCD leads on 8 of 14 compared metrics.

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 June 13, 2026. The ● marks the stronger figure on each row (cheaper multiple, higher margin/return).

The Home Depot, Inc.

$327.44B

$328.39Consumer Cyclical

MCD

McDonald's Corporation

$202.36B

$284.81Consumer Cyclical

Total return — HD vs MCD

growth of $100 · last 30y

HD +2605.0%MCD +1092.7%HD compounded faster

HD MCD

HD vs MCD: by the numbers

•HD is the larger company ($327.44B vs $202.36B market cap).
•HD trades at the lower earnings multiple (23.32 vs 23.48 P/E).
•MCD converts more revenue to profit (31.62% vs 8.41% net margin).
•MCD grew revenue faster over the past five years (6.95% vs 3.34% CAGR).
•HD pays the higher dividend yield (2.82% vs 2.58%).

Which is better, HD or MCD?

Metric tally: HD 6 · MCD 8

It depends on what you're optimizing for:

GrowthMCD(faster 5Y revenue CAGR)

IncomeHD(higher dividend yield)

QualityHD(higher ROIC)

Valuation

Metric	HD	MCD
P/E ratio	23.32	23.48
Forward P/E	20.41	20.06
P/S ratio	1.96●	7.40
P/B ratio	23.57	—
PEG ratio	6.55	5.30●
EV / EBITDA	16.58●	17.22
FCF yield	4.38%●	3.46%

Profitability

Metric	HD	MCD
Gross margin	33.13%	57.35%●
Operating margin	12.45%	46.01%●
Net margin	8.41%	31.62%●
ROE	100.99%●	-478.38%
ROIC	19.03%●	17.44%

Dividends

Metric	HD	MCD
Dividend yield	2.82%●	2.58%
Payout ratio	64.89%	61.25%

Growth (annualized)

Metric	HD	MCD
Revenue CAGR (5Y)	3.34%	6.95%●
EPS CAGR (5Y)	3.56%	13.58%●
FCF CAGR (5Y)	-3.39%	5.78%●
Total return CAGR (5Y)	3.66%	6.16%●

Frequently asked

Which is better, HD or MCD?: It depends on your goal. growth: MCD (faster 5Y revenue CAGR); income: HD (higher dividend yield); quality: HD (higher ROIC). Across all compared metrics, MCD leads 8 to 6.
Is HD or MCD cheaper?: On trailing earnings, HD is cheaper: HD trades at a 23.32 P/E and MCD at 23.48.
Which has grown faster, HD or MCD?: Over the past five years, MCD grew revenue faster — HD at a 3.34% CAGR versus MCD at 6.95%.
Does HD or MCD pay a bigger dividend?: HD yields 2.82% and MCD yields 2.58% 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 31.62%.
Which has been the better investment, HD or MCD?: Over the past 10-year, HD delivered the higher annualized total return — HD at 12.49% versus MCD at 11.47%. 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 Dividend Aristocrats 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 June 13, 2026.