WallStSmart

CVS Health Corp (CVS)vsEli Lilly and Company (LLY)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

CVS Health Corp generates 461% more annual revenue ($405.62B vs $72.25B). LLY leads profitability with a 35.0% profit margin vs 0.7%. CVS appears more attractively valued with a PEG of 0.23. LLY earns a higher WallStSmart Score of 78/100 (B+).

CVS

Buy

65

out of 100

Grade: C+

Growth: 7.3Profit: 4.0Value: 8.0Quality: 5.0
Piotroski: 4/9Altman Z: 2.11

LLY

Strong Buy

78

out of 100

Grade: B+

Growth: 10.0Profit: 10.0Value: 5.0Quality: 6.5
Piotroski: 6/9Altman Z: 2.06
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CVSUndervalued (+77.8%)

Margin of Safety

+77.8%

Fair Value

$346.22

Current Price

$92.22

$254.00 discount

UndervaluedFair: $346.22Overvalued

Intrinsic value data unavailable for LLY.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CVS5 strengths · Avg: 9.0/10
PEG RatioValuation
0.2310/10

Growing faster than its price suggests

EPS GrowthGrowth
63.1%10/10

Earnings expanding 63.1% YoY

Market CapQuality
$111.47B9/10

Large-cap with strong market position

Price/BookValuation
1.6x8/10

Reasonable price relative to book value

Free Cash FlowQuality
$3.40B8/10

Generating 3.4B in free cash flow

LLY6 strengths · Avg: 10.0/10
Market CapQuality
$905.79B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
107.5%10/10

Every $100 of equity generates 108 in profit

Profit MarginProfitability
35.0%10/10

Keeps 35 of every $100 in revenue as profit

Operating MarginProfitability
49.4%10/10

Strong operational efficiency at 49.4%

Revenue GrowthGrowth
55.5%10/10

Revenue surging 55.5% year-over-year

EPS GrowthGrowth
169.9%10/10

Earnings expanding 169.9% YoY

Areas to Watch

CVS4 concerns · Avg: 3.3/10
P/E RatioValuation
38.3x4/10

Premium valuation, high expectations priced in

Return on EquityProfitability
3.8%3/10

ROE of 3.8% — below average capital efficiency

Profit MarginProfitability
0.7%3/10

0.7% margin — thin

Operating MarginProfitability
4.1%3/10

Operating margin of 4.1%

LLY3 concerns · Avg: 3.0/10
P/E RatioValuation
35.2x4/10

Premium valuation, high expectations priced in

Debt/EquityHealth
1.603/10

Elevated debt levels

Price/BookValuation
27.7x2/10

Trading at 27.7x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : CVS

The strongest argument for CVS centers on PEG Ratio, EPS Growth, Market Cap. PEG of 0.23 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 35.0% and operating margin at 49.4%. Revenue growth of 55.5% demonstrates continued momentum.

Bear Case : CVS

The primary concerns for CVS are P/E Ratio, Return on Equity, Profit Margin. Thin 0.7% 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 0.59 — expect wider price swings.

LLY is growing revenue faster at 55.5% — sustainability is the question.

CVS generates stronger free cash flow (3.4B), providing more financial flexibility.

Bottom Line

LLY scores higher overall (78/100 vs 65/100), backed by strong 35.0% margins and 55.5% revenue growth. CVS offers better value entry with a 77.8% 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.

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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.

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