CVS Health Corp (CVS)vsGilead Sciences Inc (GILD)
CVS
CVS Health Corp
$95.93
+1.17%
HEALTHCARE · Cap: $128.46B
GILD
Gilead Sciences Inc
$129.16
-1.35%
HEALTHCARE · Cap: $154.33B
Smart Verdict
WallStSmart Research — data-driven comparison
CVS Health Corp generates 1264% more annual revenue ($405.62B vs $29.74B). GILD leads profitability with a 31.0% profit margin vs 0.7%. CVS appears more attractively valued with a PEG of 0.28. GILD earns a higher WallStSmart Score of 68/100 (B-).
CVS
Buy65
out of 100
Grade: C+
GILD
Strong Buy68
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+45.3%
Fair Value
$140.72
Current Price
$95.93
$44.79 discount
Margin of Safety
+43.9%
Fair Value
$220.62
Current Price
$129.16
$91.46 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Earnings expanding 63.1% YoY
Large-cap with strong market position
Reasonable price relative to book value
Generating 3.4B in free cash flow
Every $100 of equity generates 39 in profit
Keeps 31 of every $100 in revenue as profit
Strong operational efficiency at 39.3%
Earnings expanding 54.8% YoY
Large-cap with strong market position
Attractively priced relative to earnings
Areas to Watch
ROE of 3.8% — below average capital efficiency
0.7% margin — thin
Operating margin of 4.1%
Elevated debt levels
Expensive relative to growth rate
4.4% revenue growth
Grey zone — moderate risk
Comparative Analysis Report
WallStSmart ResearchBull Case : CVS
The strongest argument for CVS centers on PEG Ratio, EPS Growth, Market Cap. PEG of 0.28 suggests the stock is reasonably priced for its growth.
Bull Case : GILD
The strongest argument for GILD centers on Return on Equity, Profit Margin, Operating Margin. Profitability is solid with margins at 31.0% and operating margin at 39.3%.
Bear Case : CVS
The primary concerns for CVS are Return on Equity, Profit Margin, Operating Margin. A P/E of 44.2x leaves little room for execution misses. Thin 0.7% margins leave little buffer for downturns.
Bear Case : GILD
The primary concerns for GILD are PEG Ratio, Revenue Growth, Altman Z-Score.
Key Dynamics to Monitor
CVS carries more volatility with a beta of 0.62 — expect wider price swings.
CVS is growing revenue faster at 6.1% — sustainability is the question.
CVS generates stronger free cash flow (3.4B), providing more financial flexibility.
Monitor HEALTHCARE PLANS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
GILD scores higher overall (68/100 vs 65/100), backed by strong 31.0% margins. CVS offers better value entry with a 45.3% 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.
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.
Visit Website →Gilead Sciences Inc
HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA
Gilead Sciences, Inc. is an American biopharmaceutical company headquartered in Foster City, California, that focuses on researching and developing antiviral drugs used in the treatment of HIV, hepatitis B, hepatitis C, and influenza, including Harvoni and Sovaldi.
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