Comcast Corporation (CMCSA) vs McDonald's Corporation (MCD): Which Is the Better Buy in 2026?
As of 2026-08-05, CMCSA is undervalued at $25, with a DCF intrinsic value of $77 and a margin of safety of 67%. MCD is undervalued at $268, with an intrinsic value of $145368725492 and a margin of safety of 100%. Of the two, MCD has the wider margin of safety.
Rewards
- ★Gross margin of 69.4% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
- ★Free cash flow has grown at a 15.0% CAGR over the past 4 years, demonstrating strong earnings power growth.
- ★Share count has been reduced by 15% over the past 4 years through buybacks, increasing each share's claim on earnings.
- ★McDonald's Corporation has maintained ROIC above 15% for 4 consecutive years, indicating a durable competitive advantage.
- ★McDonald's Corporation scores 91/100 on the Economic Moat Score (Wide Moat), with revenue predictability as the strongest competitive dimension.
- ★Each dollar of retained earnings has created $2.47 of earning power — management is an exceptional capital allocator.
Risks
- ⚠PEG ratio of 142.98 indicates the stock is expensive relative to its expected growth — the market may be pricing in more growth than analysts project.
- ⚠Altman Z-Score of 1.37 places the company in the distress zone — financial patterns resemble those of companies that experienced bankruptcy.
- ⚠PEG ratio of 2.55 indicates the stock is expensive relative to its expected growth — the market may be pricing in more growth than analysts project.
- ⚠Insiders have sold $2.4M worth of stock in the past 3 months — significant insider liquidation.
Key Valuation Metrics
Learn more →Historical Fundamentals
Learn more →Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.
Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.
Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.
$1 Retained Earnings Test
Learn more →> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
Discounted Cash Flow (DCF) Analysis
Learn more →Reverse DCF — Market-Implied Growth
Learn more →What growth rate is the market pricing in at $25?
The market implies -5.3% Owner Earnings growth, below historical trends — potential opportunity.
Standard FCF implies a more demanding -3.5%, reflecting heavy growth investment expected to generate future returns.
What growth rate is the market pricing in at $268?
The market implies -8.6% Owner Earnings growth, below historical trends — potential opportunity.
Standard FCF implies a more demanding -3.3%, reflecting heavy growth investment expected to generate future returns.
Economic Moat Score
Learn more →Narrow moat with margin stability as the key competitive advantage. Improving roic consistency would strengthen the moat.
Wide moat with strength across all dimensions. Revenue Predictability is the standout factor.
Forensic Accounting
Learn more →M-Score Trend
M-Score Trend
Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.
Ownership Breakdown
Learn more →High insider ownership aligns management incentives with shareholders. Institutional concentration can indicate smart-money conviction but also crowding risk.
Insider Buying Activity
Learn more →Open market purchases · includes direct & indirect ownership · excludes option exercises.
Insider Selling Activity
Learn more →Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives.
🎭 Mr. Market's Mood
Learn more →"Market is pricing this stock without strong emotion in either direction"
"Market is pricing this stock without strong emotion in either direction"
Composite sentiment score based on market signals. Inspired by Buffett’s "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.
⚖️ Buffett Signal
Learn more →The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.
The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.
Frequently Asked Questions: CMCSA vs MCD
Is Comcast Corporation or McDonald's Corporation more undervalued in 2026?▼
Based on our discounted cash flow model, MCD trades at a 100.0% margin of safety (intrinsic value $145368725492 vs. price $268), compared to CMCSA's 67.5% margin of safety (intrinsic $77 vs. $25).
Which stock has a wider economic moat, Comcast Corporation or McDonald's Corporation?▼
MCD scores 91/100 (Wide moat), while CMCSA scores 67/100 (Narrow moat). The moat score measures competitive advantage durability across ROIC consistency, margin stability, revenue predictability, and reinvestment efficiency.
Is Comcast Corporation in financial distress?▼
CMCSA's Altman Z-Score of 1.4 places it in the Distress zone, signaling elevated bankruptcy risk. MCD scores 2.8 (Grey zone). The Altman Z-Score is a five-factor model that predicts insolvency within two years; scores below 1.81 indicate significant distress.
Which stock has higher return on invested capital, Comcast Corporation or McDonald's Corporation?▼
MCD earns 17.5% ROIC versus CMCSA's 9.4%. A higher ROIC means the company generates more profit per dollar of capital employed, a hallmark of durable competitive advantage in Buffett-style analysis.
Which dividend is safer, Comcast Corporation's or McDonald's Corporation's?▼
CMCSA's dividend earns a safety score of 94/100 (Very Safe), compared to MCD's 69/100 (Safe). CMCSA has raised its dividend for 3 consecutive years.