CVS Health Corp (CVS)vsUnitedHealth Group Incorporated (UNH)
CVS
CVS Health Corp
$89.95
-1.29%
HEALTHCARE · Cap: $118.13B
UNH
UnitedHealth Group Incorporated
$407.10
+0.90%
HEALTHCARE · Cap: $360.32B
Smart Verdict
WallStSmart Research — data-driven comparison
UnitedHealth Group Incorporated generates 9% more annual revenue ($450.06B vs $412.64B). UNH leads profitability with a 3.5% profit margin vs 1.2%. CVS appears more attractively valued with a PEG of 0.21. CVS earns a higher WallStSmart Score of 67/100 (B-).
CVS
Strong Buy67
out of 100
Grade: B-
UNH
Buy62
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+44.9%
Fair Value
$139.84
Current Price
$89.95
$49.89 discount
Margin of Safety
-25.9%
Fair Value
$326.16
Current Price
$407.10
$80.94 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 188.8% YoY
Large-cap with strong market position
Generating 5.7B in free cash flow
Mega-cap, among the largest globally
Earnings expanding 75.9% YoY
Generating 4.3B in free cash flow
Areas to Watch
ROE of 6.2% — below average capital efficiency
1.2% margin — thin
Operating margin of 3.9%
Moderate valuation
3.5% margin — thin
Revenue declined 0.4%
Comparative Analysis Report
WallStSmart ResearchBull Case : CVS
The strongest argument for CVS centers on PEG Ratio, Price/Book, EPS Growth. 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, EPS Growth, Free Cash Flow. PEG of 1.01 suggests the stock is reasonably priced for its growth.
Bear Case : CVS
The primary concerns for CVS are Return on Equity, Profit Margin, Operating Margin. Thin 1.2% margins leave little buffer for downturns.
Bear Case : UNH
The primary concerns for UNH are P/E Ratio, Profit Margin, Revenue Growth. Thin 3.5% margins leave little buffer for downturns.
Key Dynamics to Monitor
UNH carries more volatility with a beta of 0.61 — expect wider price swings.
CVS is growing revenue faster at 7.1% — sustainability is the question.
CVS generates stronger free cash flow (5.7B), providing more financial flexibility.
Monitor HEALTHCARE PLANS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
CVS scores higher overall (67/100 vs 62/100). 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 →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.
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