CVS Health Corp (CVS)vsMcDonald’s Corporation (MCD)
CVS
CVS Health Corp
$86.86
+7.65%
HEALTHCARE · Cap: $105.21B
MCD
McDonald’s Corporation
$284.10
-0.38%
CONSUMER CYCLICAL · Cap: $201.95B
Smart Verdict
WallStSmart Research — data-driven comparison
CVS Health Corp generates 1387% more annual revenue ($399.83B vs $26.88B). MCD leads profitability with a 31.9% profit margin vs 0.4%. CVS appears more attractively valued with a PEG of 0.24. CVS earns a higher WallStSmart Score of 65/100 (C+).
CVS
Buy65
out of 100
Grade: C+
MCD
Buy56
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+77.4%
Fair Value
$340.13
Current Price
$86.86
$253.27 discount
Margin of Safety
-85.2%
Fair Value
$154.01
Current Price
$284.10
$130.09 premium
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
Keeps 32 of every $100 in revenue as profit
Strong operational efficiency at 45.1%
Conservative balance sheet, low leverage
Generating 1.6B 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
ROE of 0.0% — below average capital efficiency
Weak financial health signals
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 0.24 suggests the stock is reasonably priced for its growth.
Bull Case : MCD
The strongest argument for MCD centers on Market Cap, Profit Margin, Operating Margin. Profitability is solid with margins at 31.9% and operating margin at 45.1%.
Bear Case : CVS
The primary concerns for CVS are Return on Equity, Profit Margin, Operating Margin. A P/E of 59.1x leaves little room for execution misses. Thin 0.4% margins leave little buffer for downturns.
Bear Case : MCD
The primary concerns for MCD are Return on Equity, Piotroski F-Score, PEG Ratio.
Key Dynamics to Monitor
CVS profiles as a value stock while MCD is a mature play — different risk/reward profiles.
CVS carries more volatility with a beta of 0.51 — expect wider price swings.
MCD is growing revenue faster at 9.7% — sustainability is the question.
CVS generates stronger free cash flow (2.6B), providing more financial flexibility.
Bottom Line
CVS scores higher overall (65/100 vs 56/100). Both earn "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 →McDonald’s Corporation
CONSUMER CYCLICAL · RESTAURANTS · USA
McDonald's Corporation is an American fast food company, founded in 1940 as a restaurant operated by Richard and Maurice McDonald, in San Bernardino, California, United States. They rechristened their business as a hamburger stand, and later turned the company into a franchise, with the Golden Arches logo being introduced in 1953 at a location in Phoenix, Arizona.
Visit Website →Compare with Other HEALTHCARE PLANS Stocks
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