MCD vs. LMT
MCD (McDonald's Corporation) and LMT (Lockheed Martin Corporation) are both stocks. MCD operates in Restaurants (Consumer Cyclical), while LMT operates in Aerospace & Defense (Industrials). Over the past 10 years, MCD returned 11.19%/yr vs 10.91%/yr for LMT. At a 0.26 correlation, their price movements are largely independent.
Performance
MCD vs. LMT - Performance Comparison
Loading charts...
Returns By Period
In the year-to-date period, MCD achieves a -7.98% return, which is significantly lower than LMT's 8.80% return. Both investments have delivered pretty close results over the past 10 years, with MCD having a 11.19% annualized return and LMT not far behind at 10.91%.
MCD
- 1D
- -0.74%
- 1M
- 1.42%
- YTD
- -7.98%
- 6M
- -9.22%
- 1Y
- -7.43%
- 3Y*
- 1.30%
- 5Y*
- 6.13%
- 10Y*
- 11.19%
LMT
- 1D
- -0.70%
- 1M
- 3.35%
- YTD
- 8.80%
- 6M
- 13.08%
- 1Y
- 10.88%
- 3Y*
- 6.80%
- 5Y*
- 9.00%
- 10Y*
- 10.91%
MCD vs. LMT - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
MCD McDonald's Corporation | -7.98% | 7.89% | 0.14% | 15.06% | 0.51% | 27.79% | 11.30% | 13.97% | 5.78% | 45.05% |
LMT Lockheed Martin Corporation | 8.80% | 2.47% | 10.02% | -4.31% | 40.48% | 3.15% | -6.49% | 52.55% | -16.35% | 31.77% |
Correlation
The correlation between MCD and LMT is 0.09, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.09 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.22 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.26 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.30 |
Correlation (All Time) Calculated using the full available price history since Jan 3, 1977 | 0.26 |
The correlation between MCD and LMT shifts across timeframes, from 0.09 (1 year) to 0.30 (10 years), reflecting how their relationship changes across market environments.
Fundamentals
MCD:
$198.20B
LMT:
$120.19B
MCD:
$12.13
LMT:
$20.61
MCD:
22.90
LMT:
25.23
MCD:
7.24
LMT:
1.61
MCD:
$27.45B
LMT:
$75.12B
MCD:
$12.10B
LMT:
$7.37B
MCD:
$14.46B
LMT:
$8.09B
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
Return for Risk
MCD vs. LMT — Risk / Return Rank
MCD
LMT
MCD vs. LMT - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for McDonald's Corporation (MCD) and Lockheed Martin Corporation (LMT). 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.
| MCD | LMT | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.86 | ||
| Sortino ratioReturn per unit of downside risk | -1.24 | ||
| Omega ratioGain probability vs. loss probability | 0.94 | 1.10 | -0.16 |
| Calmar ratioReturn relative to maximum drawdown | -0.39 | 0.43 | -0.83 |
| Martin ratioReturn relative to average drawdown | -1.02 | 1.04 | -2.06 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
Loading charts...
Sharpe Ratios by Period
| MCD | LMT | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | -0.45 | 0.41 | -0.86 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.36 | 0.40 | -0.04 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.55 | 0.46 | +0.09 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.53 | 0.38 | +0.15 |
Drawdowns
MCD vs. LMT - Drawdown Comparison
The maximum MCD drawdown since its inception was -73.20%, smaller than the maximum LMT drawdown of -79.29%. Use the drawdown chart below to compare losses from any high point for MCD and LMT.
Loading charts...
Drawdown Indicators
| MCD | LMT | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -73.20% | -79.29% | +6.09% |
Max Drawdown (1Y)Largest decline over 1 year | -19.05% | -25.15% | +6.10% |
Max Drawdown (3Y)Largest decline over 3 years | -19.05% | -31.79% | +12.74% |
Max Drawdown (5Y)Largest decline over 5 years | -19.05% | -31.79% | +12.74% |
Max Drawdown (10Y)Largest decline over 10 years | -36.90% | -36.67% | -0.23% |
Current DrawdownCurrent decline from peak | -17.54% | -22.64% | +5.10% |
Average DrawdownAverage peak-to-trough decline | -14.90% | -26.84% | +11.94% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 7.34% | 10.51% | -3.17% |
Volatility
MCD vs. LMT - Volatility Comparison
McDonald's Corporation (MCD) and Lockheed Martin Corporation (LMT) have volatilities of 5.54% and 5.31%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.
Loading charts...
Volatility by Period
| MCD | LMT | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 5.54% | 5.31% | +0.23% |
Volatility (6M)Calculated over the trailing 6-month period | 12.10% | 19.60% | -7.50% |
Volatility (1Y)Calculated over the trailing 1-year period | 16.64% | 26.62% | -9.98% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 17.28% | 22.88% | -5.60% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 20.41% | 23.72% | -3.31% |
Dividends
MCD vs. LMT - Dividend Comparison
MCD's dividend yield for the trailing twelve months is around 2.65%, more than LMT's 2.62% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
LMT Lockheed Martin Corporation | 2.62% | 2.76% | 2.62% | 2.68% | 2.34% | 2.98% | 2.76% | 2.31% | 3.13% | 2.32% | 2.71% | 2.83% |
MCD McDonald's Corporation | 2.65% | 2.35% | 2.34% | 2.10% | 2.15% | 1.96% | 2.35% | 2.39% | 2.36% | 2.23% | 2.97% | 2.91% |
Financials
MCD vs. LMT - Financials Comparison
This section allows you to compare key financial metrics between McDonald's Corporation and Lockheed Martin Corporation. You can select fields from income statements, balance sheets, and cash flow statements to easily visualize and compare the financial health of both companies.
Total Revenue: Total amount of money received from sales and other business activities
MCD vs. LMT - Profitability Comparison
MCD - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, McDonald's Corporation reported a gross profit of 0.00 and revenue of 6.52B. Therefore, the gross margin over that period was 0.0%.
LMT - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Lockheed Martin Corporation reported a gross profit of 2.08B and revenue of 18.02B. Therefore, the gross margin over that period was 11.5%.
MCD - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, McDonald's Corporation reported an operating income of 2.95B and revenue of 6.52B, resulting in an operating margin of 45.3%.
LMT - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Lockheed Martin Corporation reported an operating income of 2.06B and revenue of 18.02B, resulting in an operating margin of 11.5%.
MCD - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, McDonald's Corporation reported a net income of 1.98B and revenue of 6.52B, resulting in a net margin of 30.4%.
LMT - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Lockheed Martin Corporation reported a net income of 1.49B and revenue of 18.02B, resulting in a net margin of 8.3%.
Frequently Asked Questions
MCD and LMT have a correlation of 0.09, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
MCD has higher volatility (5.54%) compared to LMT (5.31%). In terms of maximum drawdown, MCD dropped -73.20% vs LMT's -79.29%.
LMT currently has the higher Sharpe Ratio (0.41 vs -0.45), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.
Find the right allocation for MCD and LMT
Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
Open Portfolio Optimizer