CVS Health Corp (CVS)vsEli Lilly and Company (LLY)
CVS
CVS Health Corp
$70.08
-1.55%
HEALTHCARE · Cap: $89.16B
LLY
Eli Lilly and Company
$878.24
+0.96%
HEALTHCARE · Cap: $786.04B
Smart Verdict
WallStSmart Research — data-driven comparison
CVS Health Corp generates 513% more annual revenue ($399.83B vs $65.18B). LLY leads profitability with a 31.7% profit margin vs 0.4%. CVS appears more attractively valued with a PEG of 0.20. LLY earns a higher WallStSmart Score of 80/100 (A-).
CVS
Buy65
out of 100
Grade: C+
LLY
Exceptional Buy80
out of 100
Grade: A-
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
+18.1%
Fair Value
$1072.66
Current Price
$878.24
$194.42 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 101 in profit
Keeps 32 of every $100 in revenue as profit
Strong operational efficiency at 44.9%
Revenue surging 42.6% year-over-year
Earnings expanding 51.4% YoY
Areas to Watch
ROE of 2.3% — below average capital efficiency
0.4% margin — thin
Operating margin of 1.6%
Elevated debt levels
Premium valuation, high expectations priced in
Elevated debt levels
Trading at 29.6x book value
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 : LLY
The strongest argument for LLY centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 31.7% and operating margin at 44.9%. Revenue growth of 42.6% demonstrates continued momentum.
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 : LLY
The primary concerns for LLY are P/E Ratio, Debt/Equity, Price/Book. Debt-to-equity of 1.60 is elevated, increasing financial risk.
Key Dynamics to Monitor
CVS profiles as a value stock while LLY is a growth play — different risk/reward profiles.
CVS carries more volatility with a beta of 0.46 — expect wider price swings.
LLY is growing revenue faster at 42.6% — sustainability is the question.
CVS generates stronger free cash flow (2.6B), providing more financial flexibility.
Bottom Line
LLY scores higher overall (80/100 vs 65/100), backed by strong 31.7% margins and 42.6% revenue growth. Both earn "Exceptional 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 →Eli Lilly and Company
HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA
Eli Lilly and Company is an American pharmaceutical company headquartered in Indianapolis, Indiana, with offices in 18 countries. Its products are sold in approximately 125 countries.
Visit Website →Compare with Other HEALTHCARE PLANS Stocks
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