CVS Health Corp (CVS)vsThe Coca-Cola Company (KO)
CVS
CVS Health Corp
$95.93
+1.17%
HEALTHCARE · Cap: $128.46B
KO
The Coca-Cola Company
$79.48
-0.68%
CONSUMER DEFENSIVE · Cap: $348.11B
Smart Verdict
WallStSmart Research — data-driven comparison
CVS Health Corp generates 723% more annual revenue ($405.62B vs $49.28B). KO leads profitability with a 27.8% profit margin vs 0.7%. CVS appears more attractively valued with a PEG of 0.28. KO earns a higher WallStSmart Score of 65/100 (B-).
CVS
Buy65
out of 100
Grade: C+
KO
Strong Buy65
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
-28.8%
Fair Value
$61.66
Current Price
$79.48
$17.82 premium
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 41 in profit
Strong operational efficiency at 35.1%
Keeps 28 of every $100 in revenue as profit
Generating 1.8B 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 10.2x book value
Elevated debt levels
Expensive relative to growth rate
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 : KO
The strongest argument for KO centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 27.8% and operating margin at 35.1%. Revenue growth of 12.1% 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 : KO
The primary concerns for KO are P/E Ratio, Price/Book, Debt/Equity.
Key Dynamics to Monitor
CVS profiles as a value stock while KO is a mature play — different risk/reward profiles.
CVS carries more volatility with a beta of 0.62 — expect wider price swings.
KO is growing revenue faster at 12.1% — sustainability is the question.
CVS generates stronger free cash flow (3.4B), providing more financial flexibility.
Bottom Line
CVS scores higher overall (65/100 vs 65/100). Both earn "Buy" and "Strong 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 →The Coca-Cola Company
CONSUMER DEFENSIVE · BEVERAGES - NON-ALCOHOLIC · USA
The Coca-Cola Company is an American multinational beverage corporation incorporated under Delaware's General Corporation Law and headquartered in Atlanta, Georgia. The Coca-Cola Company has interests in the manufacturing, retailing, and marketing of nonalcoholic beverage concentrates and syrups.
Visit Website →Compare with Other HEALTHCARE PLANS Stocks
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