CVS vs Rite Aid Which Is Superior?

CVS and Rite Aid are two of the largest pharmacy retailers in the United States, with both companies operating thousands of stores nationwide. Investors often compare the performance of CVS Health Corporation and Rite Aid Corporation stocks to determine which company offers a better investment opportunity. CVS has a more diversified business model, including a strong presence in the healthcare sector, while Rite Aid focuses primarily on retail pharmacy services. Both companies face competition from online retailers and changing consumer preferences, making their stocks subject to fluctuation in the market.

CVS or Rite Aid?

When comparing CVS and Rite Aid, 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 and Rite Aid.

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 has a dividend yield of 0.86%, while Rite Aid has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. CVS reports a 5-year dividend growth of 0.00% year and a payout ratio of 15.25%. On the other hand, Rite Aid reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

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 P/E ratio at 18.78 and Rite Aid's P/E ratio at -0.00. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. CVS P/B ratio is 2.55 while Rite Aid's P/B ratio is -0.00.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, CVS has seen a 5-year revenue growth of 0.73%, while Rite Aid's is 0.00%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with CVS's ROE at 13.44% and Rite Aid's ROE at 93.75%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $11.84 for CVS and $0.00 for Rite Aid. Over the past year, CVS's prices ranged from $11.50 to $23.86, with a yearly change of 107.48%. Rite Aid's prices fluctuated between $0.00 and $0.96, with a yearly change of 959800.00%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.