CVS Health Corp (CVS)vsUnitedHealth Group Incorporated (UNH)
CVS
CVS Health Corp
$71.48
-0.53%
HEALTHCARE · Cap: $90.94B
UNH
UnitedHealth Group Incorporated
$275.59
-1.73%
HEALTHCARE · Cap: $261.02B
Smart Verdict
WallStSmart Research — data-driven comparison
UnitedHealth Group Incorporated generates 12% more annual revenue ($447.57B vs $399.83B). CVS leads profitability with a 44.0% profit margin vs 2.7%. CVS appears more attractively valued with a PEG of 0.21. CVS earns a higher WallStSmart Score of 65/100 (C+).
CVS
Buy65
out of 100
Grade: C+
UNH
Buy57
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-18.4%
Fair Value
$65.05
Current Price
$71.48
$6.43 premium
Margin of Safety
-211.7%
Fair Value
$89.96
Current Price
$275.59
$185.63 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Reasonable price relative to book value
Keeps 44 of every $100 in revenue as profit
Earnings expanding 76.6% YoY
Large-cap with strong market position
Generating 2.6B in free cash flow
Mega-cap, among the largest globally
Strong operational efficiency at 34.0%
Reasonable price relative to book value
Areas to Watch
ROE of 2.3% — below average capital efficiency
Operating margin of 1.6%
Elevated debt levels
Premium valuation, high expectations priced in
2.7% margin — thin
Earnings declined 99.9%
Comparative Analysis Report
WallStSmart ResearchBull 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 : UNH
The strongest argument for UNH centers on Market Cap, Operating Margin, Price/Book. Revenue growth of 12.3% demonstrates continued momentum. PEG of 1.02 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 : UNH
The primary concerns for UNH are Profit Margin, EPS Growth. Thin 2.7% margins leave little buffer for downturns.
Key Dynamics to Monitor
CVS profiles as a mature stock while UNH is a value play — different risk/reward profiles.
CVS carries more volatility with a beta of 0.46 — expect wider price swings.
UNH is growing revenue faster at 12.3% — 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 57/100), 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.
Visit Website →UnitedHealth Group Incorporated
HEALTHCARE · HEALTHCARE PLANS · USA
UnitedHealth Group Incorporated is an American for-profit multinational managed healthcare and insurance company based in Minnetonka, Minnesota. It offers health care products and insurance services. In 2020, it was the second-largest healthcare company (behind CVS Health) by revenue with $257.1 billion, and the largest insurance company by net premiums. UnitedHealthcare revenues comprise 80% of the Group's overall revenue.
Visit Website →Compare with Other HEALTHCARE PLANS Stocks
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