WallStSmart

Applovin Corp (APP)vsCVS Health Corp (CVS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

CVS Health Corp generates 7195% more annual revenue ($399.83B vs $5.48B). APP leads profitability with a 60.8% profit margin vs 0.4%. CVS appears more attractively valued with a PEG of 0.24. APP earns a higher WallStSmart Score of 77/100 (B+).

APP

Strong Buy

77

out of 100

Grade: B+

Growth: 10.0Profit: 10.0Value: 4.0Quality: 7.5
Piotroski: 5/9Altman Z: 3.74

CVS

Buy

65

out of 100

Grade: C+

Growth: 7.3Profit: 4.0Value: 7.3Quality: 5.0
Piotroski: 4/9Altman Z: 2.11
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

APPSignificantly Overvalued (-77.9%)

Margin of Safety

-77.9%

Fair Value

$214.32

Current Price

$468.83

$254.51 premium

UndervaluedFair: $214.32Overvalued
CVSUndervalued (+77.4%)

Margin of Safety

+77.4%

Fair Value

$340.13

Current Price

$86.86

$253.27 discount

UndervaluedFair: $340.13Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

APP6 strengths · Avg: 10.0/10
Return on EquityProfitability
213.0%10/10

Every $100 of equity generates 213 in profit

Profit MarginProfitability
60.8%10/10

Keeps 61 of every $100 in revenue as profit

Operating MarginProfitability
76.9%10/10

Strong operational efficiency at 76.9%

Revenue GrowthGrowth
65.9%10/10

Revenue surging 65.9% year-over-year

EPS GrowthGrowth
84.7%10/10

Earnings expanding 84.7% YoY

Altman Z-ScoreHealth
3.7410/10

Safe zone — low bankruptcy risk

CVS5 strengths · Avg: 9.4/10
PEG RatioValuation
0.2410/10

Growing faster than its price suggests

Price/BookValuation
1.5x10/10

Reasonable price relative to book value

EPS GrowthGrowth
76.6%10/10

Earnings expanding 76.6% YoY

Market CapQuality
$105.21B9/10

Large-cap with strong market position

Free Cash FlowQuality
$2.61B8/10

Generating 2.6B in free cash flow

Areas to Watch

APP3 concerns · Avg: 2.3/10
Debt/EquityHealth
1.663/10

Elevated debt levels

P/E RatioValuation
45.9x2/10

Premium valuation, high expectations priced in

Price/BookValuation
74.3x2/10

Trading at 74.3x book value

CVS4 concerns · Avg: 3.0/10
Return on EquityProfitability
2.3%3/10

ROE of 2.3% — below average capital efficiency

Profit MarginProfitability
0.4%3/10

0.4% margin — thin

Operating MarginProfitability
1.6%3/10

Operating margin of 1.6%

Debt/EquityHealth
1.243/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : APP

The strongest argument for APP centers on Return on Equity, Profit Margin, Operating Margin. Profitability is solid with margins at 60.8% and operating margin at 76.9%. Revenue growth of 65.9% demonstrates continued momentum.

Bull Case : CVS

The strongest argument for CVS centers on PEG Ratio, Price/Book, EPS Growth. PEG of 0.24 suggests the stock is reasonably priced for its growth.

Bear Case : APP

The primary concerns for APP are Debt/Equity, P/E Ratio, Price/Book. A P/E of 45.9x leaves little room for execution misses. Debt-to-equity of 1.66 is elevated, increasing financial risk.

Bear Case : CVS

The primary concerns for CVS are Return on Equity, Profit Margin, Operating Margin. A P/E of 59.1x leaves little room for execution misses. Thin 0.4% margins leave little buffer for downturns.

Key Dynamics to Monitor

APP profiles as a growth stock while CVS is a value play — different risk/reward profiles.

APP carries more volatility with a beta of 2.37 — expect wider price swings.

APP is growing revenue faster at 65.9% — sustainability is the question.

CVS generates stronger free cash flow (2.6B), providing more financial flexibility.

Bottom Line

APP scores higher overall (77/100 vs 65/100), backed by strong 60.8% margins and 65.9% revenue growth. CVS offers better value entry with a 77.4% margin of safety. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Applovin Corp

COMMUNICATION SERVICES · ADVERTISING AGENCIES · USA

AppLovin Corporation is committed to creating a software-based platform for mobile application developers to improve the marketing and monetization of their applications globally. The company is headquartered in Palo Alto, California.

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CVS Health Corp

HEALTHCARE · HEALTHCARE PLANS · USA

CVS Health (previously CVS Corporation and CVS Caremark Corporation) is an American healthcare company that owns CVS Pharmacy, a retail pharmacy chain; CVS Caremark, a pharmacy benefits manager; Aetna, a health insurance provider, among many other brands. The company's headquarters is in Woonsocket, Rhode Island.

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