CVS Health Corp (CVS)vsRoyal Bank of Canada (RY)
CVS
CVS Health Corp
$86.86
+7.65%
HEALTHCARE · Cap: $105.21B
RY
Royal Bank of Canada
$179.54
-0.24%
FINANCIAL SERVICES · Cap: $250.25B
Smart Verdict
WallStSmart Research — data-driven comparison
CVS Health Corp generates 530% more annual revenue ($399.83B vs $63.42B). RY leads profitability with a 33.1% profit margin vs 0.4%. CVS appears more attractively valued with a PEG of 0.24. RY earns a higher WallStSmart Score of 68/100 (B-).
CVS
Buy65
out of 100
Grade: C+
RY
Strong Buy68
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+77.4%
Fair Value
$340.13
Current Price
$86.86
$253.27 discount
Intrinsic value data unavailable for RY.
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 33 of every $100 in revenue as profit
Strong operational efficiency at 46.2%
Generating 37.3B in free cash flow
Attractively priced relative to earnings
Reasonable price relative to book value
Areas to Watch
ROE of 2.3% — below average capital efficiency
0.4% margin — thin
Operating margin of 1.6%
Elevated debt levels
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 : RY
The strongest argument for RY centers on Market Cap, Profit Margin, Operating Margin. Profitability is solid with margins at 33.1% and operating margin at 46.2%.
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 : RY
The primary concerns for RY are PEG Ratio.
Key Dynamics to Monitor
CVS profiles as a value stock while RY is a mature play — different risk/reward profiles.
RY carries more volatility with a beta of 0.92 — expect wider price swings.
CVS is growing revenue faster at 8.4% — sustainability is the question.
RY generates stronger free cash flow (37.3B), providing more financial flexibility.
Bottom Line
RY scores higher overall (68/100 vs 65/100), backed by strong 33.1% margins. CVS offers better value entry with a 77.4% 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 →Royal Bank of Canada
FINANCIAL SERVICES · BANKS - DIVERSIFIED · USA
Royal Bank of Canada is a globally diversified financial services company. The company is headquartered in Toronto, Canada.
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