CVS Health Corp (CVS)vsAlphabet Inc Class C (GOOG)
CVS
CVS Health Corp
$95.93
+1.17%
HEALTHCARE · Cap: $128.46B
GOOG
Alphabet Inc Class C
$365.76
+1.48%
COMMUNICATION SERVICES · Cap: $4.48T
Smart Verdict
WallStSmart Research — data-driven comparison
Alphabet Inc Class C generates 4% more annual revenue ($422.50B vs $405.62B). GOOG leads profitability with a 37.9% profit margin vs 0.7%. CVS appears more attractively valued with a PEG of 0.28. GOOG earns a higher WallStSmart Score of 75/100 (B).
CVS
Buy65
out of 100
Grade: C+
GOOG
Strong Buy75
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
+17.6%
Fair Value
$445.94
Current Price
$365.76
$80.18 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
Mega-cap, among the largest globally
Every $100 of equity generates 33 in profit
Keeps 38 of every $100 in revenue as profit
Strong operational efficiency at 36.1%
Earnings expanding 82.0% YoY
Generating 10.1B in free cash flow
Areas to Watch
ROE of 3.8% — below average capital efficiency
0.7% margin — thin
Operating margin of 4.1%
Elevated debt levels
Moderate valuation
Trading at 9.3x book value
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 : GOOG
The strongest argument for GOOG centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 37.9% and operating margin at 36.1%. Revenue growth of 21.8% demonstrates continued momentum.
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 : GOOG
The primary concerns for GOOG are P/E Ratio, Price/Book.
Key Dynamics to Monitor
CVS profiles as a value stock while GOOG is a growth play — different risk/reward profiles.
GOOG carries more volatility with a beta of 1.24 — expect wider price swings.
GOOG is growing revenue faster at 21.8% — sustainability is the question.
GOOG generates stronger free cash flow (10.1B), providing more financial flexibility.
Bottom Line
GOOG scores higher overall (75/100 vs 65/100), backed by strong 37.9% margins and 21.8% revenue growth. 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 →Alphabet Inc Class C
COMMUNICATION SERVICES · INTERNET CONTENT & INFORMATION · USA
Alphabet Inc. is an American multinational conglomerate headquartered in Mountain View, California. It was created through a restructuring of Google on October 2, 2015, and became the parent company of Google and several former Google subsidiaries. The two co-founders of Google remained as controlling shareholders, board members, and employees at Alphabet. Alphabet is the world's fourth-largest technology company by revenue and one of the world's most valuable companies.
Visit Website →Compare with Other HEALTHCARE PLANS Stocks
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