MCD vs. WSO
MCD (McDonald's Corporation) and WSO (Watsco, Inc.) are both stocks. MCD operates in Restaurants (Consumer Cyclical), while WSO operates in Industrial Distribution (Industrials). Over the past 10 years, MCD returned 11.53%/yr vs 14.68%/yr for WSO. At a 0.20 correlation, their price movements are largely independent.
Performance
MCD vs. WSO - Performance Comparison
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Returns By Period
In the year-to-date period, MCD achieves a -5.22% return, which is significantly lower than WSO's 16.03% return. Over the past 10 years, MCD has underperformed WSO with an annualized return of 11.53%, while WSO has yielded a comparatively higher 14.68% annualized return.
MCD
- 1D
- 0.46%
- 1M
- 4.22%
- YTD
- -5.22%
- 6M
- -9.12%
- 1Y
- -2.93%
- 3Y*
- 1.50%
- 5Y*
- 6.38%
- 10Y*
- 11.53%
WSO
- 1D
- 1.14%
- 1M
- -4.55%
- YTD
- 16.03%
- 6M
- 13.46%
- 1Y
- -8.15%
- 3Y*
- 4.33%
- 5Y*
- 9.38%
- 10Y*
- 14.68%
MCD vs. WSO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
MCD McDonald's Corporation | -5.22% | 7.89% | 0.14% | 15.06% | 0.51% | 27.79% | 11.30% | 13.97% | 5.78% | 45.05% |
WSO Watsco, Inc. | 16.03% | -27.02% | 13.22% | 77.00% | -17.74% | 42.09% | 30.57% | 34.99% | -15.54% | 18.36% |
Correlation
The correlation between MCD and WSO is 0.17, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.17 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.17 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.26 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.26 |
Correlation (All Time) Calculated using the full available price history since Jun 7, 1984 | 0.20 |
Fundamentals
MCD:
$204.15B
WSO:
$14.61B
MCD:
$12.13
WSO:
$13.08
MCD:
23.58
WSO:
29.42
MCD:
3.79
WSO:
5.72
MCD:
7.46
WSO:
2.02
MCD:
$27.45B
WSO:
$7.24B
MCD:
$12.10B
WSO:
$2.05B
MCD:
$14.46B
WSO:
$778.38M
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Return for Risk
MCD vs. WSO — Risk / Return Rank
MCD
WSO
MCD vs. WSO - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for McDonald's Corporation (MCD) and Watsco, Inc. (WSO). 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.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| MCD | WSO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.08 | ||
| Sortino ratioReturn per unit of downside risk | +0.02 | ||
| Omega ratioGain probability vs. loss probability | 0.98 | 0.98 | 0.00 |
| Calmar ratioReturn relative to maximum drawdown | -0.15 | -0.24 | +0.09 |
| Martin ratioReturn relative to average drawdown | -0.39 | -0.41 | +0.02 |
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Drawdowns
MCD vs. WSO - Drawdown Comparison
The maximum MCD drawdown since its inception was -73.20%, which is greater than WSO's maximum drawdown of -64.30%. Use the drawdown chart below to compare losses from any high point for MCD and WSO.
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Drawdown Indicators
| MCD | WSO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -73.20% | -64.30% | -8.90% |
Max Drawdown (1Y)Largest decline over 1 year | -19.05% | -33.42% | +14.37% |
Max Drawdown (3Y)Largest decline over 3 years | -19.05% | -41.62% | +22.57% |
Max Drawdown (5Y)Largest decline over 5 years | -19.05% | -41.62% | +22.57% |
Max Drawdown (10Y)Largest decline over 10 years | -36.90% | -41.62% | +4.72% |
Current DrawdownCurrent decline from peak | -15.07% | -29.44% | +14.37% |
Average DrawdownAverage peak-to-trough decline | -14.89% | -18.06% | +3.17% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 7.57% | 19.84% | -12.27% |
Volatility
MCD vs. WSO - Volatility Comparison
The current volatility for McDonald's Corporation (MCD) is 4.94%, while Watsco, Inc. (WSO) has a volatility of 9.18%. This indicates that MCD experiences smaller price fluctuations and is considered to be less risky than WSO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| MCD | WSO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.94% | 9.18% | -4.24% |
Volatility (6M)Calculated over the trailing 6-month period | 12.21% | 22.53% | -10.32% |
Volatility (1Y)Calculated over the trailing 1-year period | 16.65% | 31.51% | -14.86% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 17.28% | 30.21% | -12.93% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 20.41% | 27.84% | -7.43% |
Dividends
MCD vs. WSO - Dividend Comparison
MCD's dividend yield for the trailing twelve months is around 2.57%, less than WSO's 3.20% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
MCD McDonald's Corporation | 2.57% | 2.35% | 2.34% | 2.10% | 2.15% | 1.96% | 2.35% | 2.39% | 2.36% | 2.23% | 2.97% | 2.91% |
WSO Watsco, Inc. | 3.20% | 3.47% | 2.23% | 2.29% | 3.43% | 2.44% | 3.06% | 3.55% | 4.02% | 2.71% | 2.43% | 2.39% |
Financials
MCD vs. WSO - Financials Comparison
This section allows you to compare key financial metrics between McDonald's Corporation and Watsco, Inc.. 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. WSO - 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%.
WSO - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Watsco, Inc. reported a gross profit of 427.56M and revenue of 1.53B. Therefore, the gross margin over that period was 27.9%.
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%.
WSO - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Watsco, Inc. reported an operating income of 110.18M and revenue of 1.53B, resulting in an operating margin of 7.2%.
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%.
WSO - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Watsco, Inc. reported a net income of 79.07M and revenue of 1.53B, resulting in a net margin of 5.2%.
Frequently Asked Questions
MCD and WSO have a correlation of 0.17, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
WSO has higher volatility (9.18%) compared to MCD (4.94%). In terms of maximum drawdown, MCD dropped -73.20% vs WSO's -64.30%.
MCD currently has the higher Sharpe Ratio (-0.18 vs -0.26), 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.
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