Oracle, McDonald's: Top 5 Large-Cap Stocks

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BOSTON (TheStreet) -- These companies have market caps over $10 billion and "buy" ratings from our quantitative model, which considers more than 60 factors. They're ordered by their potential to appreciate, starting with the company with the best growth prospects.

Oracle(ORCL Quote) sells computer networking and database software.

The numbers: Fiscal fourth-quarter net income fell 7% to $1.9 billion and earnings per share decreased 3% to 38 cents, cushioned by a lower share count. Revenue declined 5% to $6.9 billion. Its gross margin rose from 82% to 84% and its operating margin remained steady at 43%. The company holds $13 billion of cash reserves, amounting to a quick ratio of 1.9. A debt-to-equity ratio of 0.4 indicates conservative leverage.

The stock: Oracle has increased 28% this year, outpacing the Dow Jones Industrial Average and S&P 500 Index. The stock trades at a price-to-earnings ratio of 21, on par with the market, but a discount to software peers. The shares offer a dividend yield that's less than 1%.

McDonald's(MCD Quote) sells hamburgers and French fries at its fast-food restaurants.

The numbers: Second-quarter net income fell 8% to $1.1 billion, or 98 cents a share. Revenue declined 7% to $5.6 billion. Its gross margin climbed from 42% to 44% and its operating margin rose from 27% to 29%. A quick ratio of 1.1 and debt-to-equity ratio of 0.8 demonstrate fiscal stability.

The stock: McDonald's is down 13% this year, trailing major U.S. indices. The stock trades at a price-to-earnings ratio of 14, a discount to the market and other restaurant stocks. The shares offer a 3.7% dividend yield.