CVS Health Corp (CVS)vsNetflix Inc (NFLX)
CVS
CVS Health Corp
$95.93
+1.17%
HEALTHCARE · Cap: $128.46B
NFLX
Netflix Inc
$82.18
+0.55%
COMMUNICATION SERVICES · Cap: $343.90B
Smart Verdict
WallStSmart Research — data-driven comparison
CVS Health Corp generates 765% more annual revenue ($405.62B vs $46.89B). NFLX leads profitability with a 28.5% profit margin vs 0.7%. CVS appears more attractively valued with a PEG of 0.28. NFLX earns a higher WallStSmart Score of 75/100 (B).
CVS
Buy65
out of 100
Grade: C+
NFLX
Strong Buy75
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
-45.8%
Fair Value
$53.99
Current Price
$82.18
$28.19 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 43 in profit
Strong operational efficiency at 32.3%
Earnings expanding 86.4% YoY
Safe zone — low bankruptcy risk
Keeps 29 of every $100 in revenue as profit
Areas to Watch
ROE of 3.8% — below average capital efficiency
0.7% margin — thin
Operating margin of 4.1%
Elevated debt levels
Expensive relative to growth rate
Moderate valuation
Trading at 11.1x book value
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 : NFLX
The strongest argument for NFLX centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 28.5% and operating margin at 32.3%. Revenue growth of 16.2% 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 : NFLX
The primary concerns for NFLX are PEG Ratio, P/E Ratio, Price/Book.
Key Dynamics to Monitor
CVS profiles as a value stock while NFLX is a growth play — different risk/reward profiles.
NFLX carries more volatility with a beta of 1.49 — expect wider price swings.
NFLX is growing revenue faster at 16.2% — sustainability is the question.
NFLX generates stronger free cash flow (5.1B), providing more financial flexibility.
Bottom Line
NFLX scores higher overall (75/100 vs 65/100), backed by strong 28.5% margins and 16.2% revenue growth. CVS offers better value entry with a 45.3% 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.
Visit Website →Netflix Inc
COMMUNICATION SERVICES · ENTERTAINMENT · USA
Netflix, Inc. is an American over-the-top content platform and production company headquartered in Los Gatos, California. Netflix was founded in 1997 by Reed Hastings and Marc Randolph in Scotts Valley, California. The company's primary business is a subscription-based streaming service offering online streaming from a library of films and television series, including those produced in-house.
Visit Website →Compare with Other HEALTHCARE PLANS Stocks
Want to dig deeper into these stocks?