CVS vs Walmart Which Is More Lucrative?

CVS Health Corporation and Walmart Inc. are two major players in the retail and healthcare industries, each offering unique investment opportunities for potential investors. CVS focuses on pharmacy services and healthcare products, while Walmart is known for its expansive retail operations. Both companies have seen fluctuations in their stock prices in recent years, with CVS facing challenges in the healthcare sector and Walmart seeing growth in its e-commerce business. Understanding the strengths and weaknesses of each company can help investors make informed decisions about their stock portfolios.

CVS or Walmart?

When comparing CVS and Walmart, 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 Walmart.

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 Walmart has a dividend yield of 0.66%. 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, Walmart reports a 5-year dividend growth of 1.85% year and a payout ratio of 33.23%.

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 18.74 and Walmart's P/E ratio at 38.63. 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 Walmart's P/B ratio is 8.63.

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 Walmart's is 0.34%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with CVS's ROE at 13.44% and Walmart's ROE at 23.31%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $11.84 for CVS and $93.77 for Walmart. Over the past year, CVS's prices ranged from $11.50 to $23.86, with a yearly change of 107.48%. Walmart's prices fluctuated between $50.08 and $96.18, with a yearly change of 92.07%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.