WallStSmart

CVS Health Corp (CVS)vsMolina Healthcare Inc (MOH)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

CVS Health Corp generates 818% more annual revenue ($399.83B vs $43.56B). MOH leads profitability with a 108.0% profit margin vs 44.0%. CVS appears more attractively valued with a PEG of 0.21. CVS earns a higher WallStSmart Score of 65/100 (C+).

CVS

Buy

65

out of 100

Grade: C+

Growth: 7.3Profit: 5.5Value: 4.7Quality: 6.5
Piotroski: 4/9Altman Z: 2.11

MOH

Buy

54

out of 100

Grade: C-

Growth: 5.3Profit: 6.0Value: 7.3Quality: 8.0
Piotroski: 4/9Altman Z: 4.01
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CVSSignificantly Overvalued (-18.4%)

Margin of Safety

-18.4%

Fair Value

$65.05

Current Price

$71.48

$6.43 premium

UndervaluedFair: $65.05Overvalued
MOHSignificantly Overvalued (-102.2%)

Margin of Safety

-102.2%

Fair Value

$60.66

Current Price

$139.41

$78.75 premium

UndervaluedFair: $60.66Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CVS6 strengths · Avg: 9.5/10
PEG RatioValuation
0.2110/10

Growing faster than its price suggests

Price/BookValuation
1.2x10/10

Reasonable price relative to book value

Profit MarginProfitability
44.0%10/10

Keeps 44 of every $100 in revenue as profit

EPS GrowthGrowth
76.6%10/10

Earnings expanding 76.6% YoY

Market CapQuality
$90.94B9/10

Large-cap with strong market position

Free Cash FlowQuality
$2.61B8/10

Generating 2.6B in free cash flow

MOH4 strengths · Avg: 9.0/10
Profit MarginProfitability
108.0%10/10

Keeps 108 of every $100 in revenue as profit

Altman Z-ScoreHealth
4.0110/10

Safe zone — low bankruptcy risk

P/E RatioValuation
15.6x8/10

Attractively priced relative to earnings

Price/BookValuation
1.7x8/10

Reasonable price relative to book value

Areas to Watch

CVS4 concerns · Avg: 2.8/10
Return on EquityProfitability
2.3%3/10

ROE of 2.3% — below average capital efficiency

Operating MarginProfitability
1.6%3/10

Operating margin of 1.6%

Debt/EquityHealth
1.243/10

Elevated debt levels

P/E RatioValuation
51.4x2/10

Premium valuation, high expectations priced in

MOH3 concerns · Avg: 1.7/10
EPS GrowthGrowth
-73.4%2/10

Earnings declined 73.4%

Free Cash FlowQuality
$-299.00M2/10

Negative free cash flow — burning cash

Operating MarginProfitability
-150.0%1/10

Operating margin of -150.0%

Comparative Analysis Report

WallStSmart Research

Bull Case : CVS

The strongest argument for CVS centers on PEG Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 44.0% and operating margin at 1.6%. PEG of 0.21 suggests the stock is reasonably priced for its growth.

Bull Case : MOH

The strongest argument for MOH centers on Profit Margin, Altman Z-Score, P/E Ratio. Profitability is solid with margins at 108.0% and operating margin at -150.0%. PEG of 1.38 suggests the stock is reasonably priced for its growth.

Bear Case : CVS

The primary concerns for CVS are Return on Equity, Operating Margin, Debt/Equity. A P/E of 51.4x leaves little room for execution misses.

Bear Case : MOH

The primary concerns for MOH are EPS Growth, Free Cash Flow, Operating Margin.

Key Dynamics to Monitor

MOH carries more volatility with a beta of 0.50 — expect wider price swings.

CVS is growing revenue faster at 8.4% — sustainability is the question.

CVS generates stronger free cash flow (2.6B), providing more financial flexibility.

Monitor HEALTHCARE PLANS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

CVS scores higher overall (65/100 vs 54/100), backed by strong 44.0% margins. 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.

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Molina Healthcare Inc

HEALTHCARE · HEALTHCARE PLANS · USA

Molina Healthcare, Inc. provides managed care services to low-income individuals and families under the Medicaid and Medicare programs and through the state insurance marketplaces. The company is headquartered in Long Beach, California.

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