CVS Health Corp (CVS)vsJohnson & Johnson (JNJ)
CVS
CVS Health Corp
$70.08
-1.55%
HEALTHCARE · Cap: $89.16B
JNJ
Johnson & Johnson
$240.45
+0.85%
HEALTHCARE · Cap: $579.46B
Smart Verdict
WallStSmart Research — data-driven comparison
CVS Health Corp generates 324% more annual revenue ($399.83B vs $94.19B). JNJ leads profitability with a 28.5% profit margin vs 0.4%. CVS appears more attractively valued with a PEG of 0.20. JNJ earns a higher WallStSmart Score of 71/100 (B).
CVS
Buy65
out of 100
Grade: C+
JNJ
Strong Buy71
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-18.4%
Fair Value
$65.05
Current Price
$70.08
$5.03 premium
Margin of Safety
+53.5%
Fair Value
$516.67
Current Price
$240.45
$276.22 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
Mega-cap, among the largest globally
Every $100 of equity generates 35 in profit
Keeps 29 of every $100 in revenue as profit
Strong operational efficiency at 24.0%
Earnings expanding 48.6% YoY
Generating 5.5B in free cash flow
Areas to Watch
ROE of 2.3% — below average capital efficiency
0.4% margin — thin
Operating margin of 1.6%
Elevated debt levels
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : CVS
The strongest argument for CVS centers on PEG Ratio, Price/Book, EPS Growth. PEG of 0.20 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 28.5% and operating margin at 24.0%.
Bear Case : CVS
The primary concerns for CVS are Return on Equity, Profit Margin, Operating Margin. A P/E of 50.4x leaves little room for execution misses. Thin 0.4% margins leave little buffer for downturns.
Bear Case : JNJ
The primary concerns for JNJ are PEG Ratio.
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 0.46 — expect wider price swings.
JNJ is growing revenue faster at 9.1% — sustainability is the question.
JNJ generates stronger free cash flow (5.5B), providing more financial flexibility.
Bottom Line
JNJ scores higher overall (71/100 vs 65/100), backed by strong 28.5% margins. 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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