CVS Health vs CVS

CVS Health Corporation is a well-known healthcare company that operates a chain of retail pharmacies, healthcare clinics, and various health services. On the other hand, CVS stocks refer to the shares of the company that are publicly traded on the stock market. Investors and analysts often compare CVS Health's performance as a company to the performance of its stocks to gauge the company's financial health and growth potential. Understanding the relationship between CVS Health and CVS stocks is essential for making informed investment decisions.

CVS Health or CVS?

When comparing CVS Health and CVS, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between CVS Health and CVS.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. CVS Health has a dividend yield of 4.0%, while CVS has a dividend yield of 0.7%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. CVS Health reports a 5-year dividend growth of 3.89% year and a payout ratio of 45.29%. On the other hand, CVS reports a 5-year dividend growth of 0.00% year and a payout ratio of 15.25%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with CVS Health P/E ratio at 11.35 and CVS's P/E ratio at 21.74. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. CVS Health P/B ratio is 1.09 while CVS's P/B ratio is 2.96.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, CVS Health has seen a 5-year revenue growth of 0.49%, while CVS's is 0.73%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with CVS Health's ROE at 9.60% and CVS's ROE at 13.44%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $63.60 for CVS Health and $12.07 for CVS. Over the past year, CVS Health's prices ranged from $52.77 to $83.25, with a yearly change of 57.76%. CVS's prices fluctuated between $11.50 and $23.86, with a yearly change of 107.48%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.