KO vs. MCD
Compare and contrast key facts about The Coca-Cola Company (KO) and McDonald's Corporation (MCD).
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: KO or MCD.
Key characteristics
KO | MCD | |
---|---|---|
YTD Return | 4.39% | -4.35% |
1Y Return | 2.53% | 4.54% |
3Y Return (Ann) | 8.02% | 10.22% |
5Y Return (Ann) | 8.78% | 10.78% |
10Y Return (Ann) | 7.98% | 14.21% |
Sharpe Ratio | 0.21 | 0.38 |
Daily Std Dev | 12.72% | 14.03% |
Max Drawdown | -68.23% | -73.62% |
Current Drawdown | -2.07% | -5.63% |
Fundamentals
KO | MCD | |
---|---|---|
Market Cap | $260.78B | $204.07B |
EPS | $2.47 | $11.56 |
PE Ratio | 24.49 | 24.45 |
PEG Ratio | 3.04 | 2.37 |
Revenue (TTM) | $45.75B | $25.49B |
Gross Profit (TTM) | $25.00B | $13.21B |
EBITDA (TTM) | $14.44B | $13.68B |
Correlation
The correlation between KO and MCD is 0.38, which is considered to be low. This implies their price changes are not closely related. A low correlation is generally favorable for portfolio diversification, as it helps to reduce overall risk by spreading it across multiple assets with different performance patterns.
Performance
KO vs. MCD - Performance Comparison
In the year-to-date period, KO achieves a 4.39% return, which is significantly higher than MCD's -4.35% return. Over the past 10 years, KO has underperformed MCD with an annualized return of 7.98%, while MCD has yielded a comparatively higher 14.21% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
Risk-Adjusted Performance
KO vs. MCD - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for The Coca-Cola Company (KO) and McDonald's Corporation (MCD). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
Sharpe ratio | Sortino ratio | Omega ratio | Calmar ratio | Ulcer Index | |
---|---|---|---|---|---|
The Coca-Cola Company | 0.21 | ||||
McDonald's Corporation | 0.38 |
Dividends
KO vs. MCD - Dividend Comparison
KO's dividend yield for the trailing twelve months is around 3.06%, more than MCD's 2.26% yield.
TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
---|---|---|---|---|---|---|---|---|---|---|---|---|
The Coca-Cola Company | 3.06% | 3.12% | 2.77% | 2.84% | 2.99% | 2.89% | 3.29% | 3.23% | 3.38% | 3.07% | 2.89% | 2.71% |
McDonald's Corporation | 2.26% | 2.10% | 2.15% | 1.96% | 2.35% | 2.39% | 2.36% | 2.23% | 2.97% | 2.91% | 3.50% | 3.22% |
Drawdowns
KO vs. MCD - Drawdown Comparison
The maximum KO drawdown since its inception was -68.23%, smaller than the maximum MCD drawdown of -73.62%. The drawdown chart below compares losses from any high point along the way for KO and MCD
Volatility
KO vs. MCD - Volatility Comparison
The current volatility for The Coca-Cola Company (KO) is 2.73%, while McDonald's Corporation (MCD) has a volatility of 5.11%. This indicates that KO experiences smaller price fluctuations and is considered to be less risky than MCD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.