CVS Health Corp (CVS)vsJohnson & Johnson (JNJ)
CVS
CVS Health Corp
$94.66
-0.66%
HEALTHCARE · Cap: $121.07B
JNJ
Johnson & Johnson
$265.58
-0.29%
HEALTHCARE · Cap: $640.02B
Smart Verdict
WallStSmart Research — data-driven comparison
CVS Health Corp generates 321% more annual revenue ($412.64B vs $97.93B). JNJ leads profitability with a 21.5% profit margin vs 1.2%. CVS appears more attractively valued with a PEG of 0.22. CVS earns a higher WallStSmart Score of 67/100 (B-).
CVS
Strong Buy67
out of 100
Grade: B-
JNJ
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+45.4%
Fair Value
$141.12
Current Price
$94.66
$46.46 discount
Margin of Safety
-88.9%
Fair Value
$140.57
Current Price
$265.58
$125.01 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Earnings expanding 188.8% YoY
Large-cap with strong market position
Reasonable price relative to book value
Generating 5.7B in free cash flow
Mega-cap, among the largest globally
Every $100 of equity generates 25 in profit
Keeps 22 of every $100 in revenue as profit
Strong operational efficiency at 29.2%
Generating 3.4B in free cash flow
Areas to Watch
Moderate valuation
ROE of 6.2% — below average capital efficiency
1.2% margin — thin
Operating margin of 3.9%
Premium valuation, high expectations priced in
Expensive relative to growth rate
Earnings declined 0.9%
Comparative Analysis Report
WallStSmart ResearchBull Case : CVS
The strongest argument for CVS centers on PEG Ratio, EPS Growth, Market Cap. PEG of 0.22 suggests the stock is reasonably priced for its growth.
Bull Case : JNJ
The strongest argument for JNJ centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 21.5% and operating margin at 29.2%.
Bear Case : CVS
The primary concerns for CVS are P/E Ratio, Return on Equity, Profit Margin. Thin 1.2% margins leave little buffer for downturns.
Bear Case : JNJ
The primary concerns for JNJ are P/E Ratio, PEG Ratio, EPS Growth.
Key Dynamics to Monitor
CVS profiles as a value stock while JNJ is a mature play — different risk/reward profiles.
CVS carries more volatility with a beta of 0.58 — expect wider price swings.
CVS is growing revenue faster at 7.1% — sustainability is the question.
CVS generates stronger free cash flow (5.7B), providing more financial flexibility.
Bottom Line
CVS scores higher overall (67/100 vs 59/100). 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 →Johnson & Johnson
HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA
Johnson & Johnson (J&J) is an American multinational corporation founded in 1886 that develops medical devices, pharmaceuticals, and consumer packaged goods. Its common stock is a component of the Dow Jones Industrial Average and the company is ranked No. 36 on the 2021 Fortune 500 list of the largest United States corporations by total revenue. Johnson & Johnson is one of the world's most valuable companies, and is one of only two U.S.-based companies that has a prime credit rating of AAA, higher than that of the United States government.
Visit Website →Compare with Other HEALTHCARE PLANS Stocks
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