CVS Health Corp (CVS)vsGilead Sciences Inc (GILD)
CVS
CVS Health Corp
$86.86
+7.65%
HEALTHCARE · Cap: $105.21B
GILD
Gilead Sciences Inc
$136.30
+2.11%
HEALTHCARE · Cap: $163.40B
Smart Verdict
WallStSmart Research — data-driven comparison
CVS Health Corp generates 1258% more annual revenue ($399.83B vs $29.44B). GILD leads profitability with a 28.9% profit margin vs 0.4%. CVS appears more attractively valued with a PEG of 0.24. GILD earns a higher WallStSmart Score of 72/100 (B).
CVS
Buy65
out of 100
Grade: C+
GILD
Strong Buy72
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+77.4%
Fair Value
$340.13
Current Price
$86.86
$253.27 discount
Margin of Safety
+43.5%
Fair Value
$236.08
Current Price
$136.30
$99.78 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Reasonable price relative to book value
Earnings expanding 76.6% YoY
Large-cap with strong market position
Generating 2.6B in free cash flow
Growing faster than its price suggests
Every $100 of equity generates 41 in profit
Strong operational efficiency at 37.4%
Large-cap with strong market position
Keeps 29 of every $100 in revenue as profit
Earnings expanding 23.4% YoY
Areas to Watch
ROE of 2.3% — below average capital efficiency
0.4% margin — thin
Operating margin of 1.6%
Elevated debt levels
4.7% revenue growth
Comparative Analysis Report
WallStSmart ResearchBull 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.
Bull Case : GILD
The strongest argument for GILD centers on PEG Ratio, Return on Equity, Operating Margin. Profitability is solid with margins at 28.9% and operating margin at 37.4%. PEG of 0.37 suggests the stock is reasonably priced for its growth.
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.
Bear Case : GILD
The primary concerns for GILD are Revenue Growth.
Key Dynamics to Monitor
CVS carries more volatility with a beta of 0.51 — expect wider price swings.
CVS is growing revenue faster at 8.4% — sustainability is the question.
GILD generates stronger free cash flow (3.1B), providing more financial flexibility.
Monitor HEALTHCARE PLANS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
GILD scores higher overall (72/100 vs 65/100), backed by strong 28.9% margins. 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.
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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