WallStSmart

CVS Health Corp (CVS)vsEdwards Lifesciences Corp (EW)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

CVS Health Corp generates 6335% more annual revenue ($405.62B vs $6.30B). EW leads profitability with a 17.4% profit margin vs 0.7%. CVS appears more attractively valued with a PEG of 0.28. CVS earns a higher WallStSmart Score of 65/100 (C+).

CVS

Buy

65

out of 100

Grade: C+

Growth: 7.3Profit: 4.0Value: 8.0Quality: 5.0
Piotroski: 4/9Altman Z: 2.11

EW

Buy

61

out of 100

Grade: C+

Growth: 6.0Profit: 8.0Value: 6.0Quality: 8.5
Piotroski: 3/9Altman Z: 4.48
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CVSUndervalued (+45.3%)

Margin of Safety

+45.3%

Fair Value

$140.72

Current Price

$95.93

$44.79 discount

UndervaluedFair: $140.72Overvalued
EWUndervalued (+68.6%)

Margin of Safety

+68.6%

Fair Value

$252.36

Current Price

$85.96

$166.40 discount

UndervaluedFair: $252.36Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CVS5 strengths · Avg: 9.0/10
PEG RatioValuation
0.2810/10

Growing faster than its price suggests

EPS GrowthGrowth
63.1%10/10

Earnings expanding 63.1% YoY

Market CapQuality
$128.46B9/10

Large-cap with strong market position

Price/BookValuation
1.6x8/10

Reasonable price relative to book value

Free Cash FlowQuality
$3.40B8/10

Generating 3.4B in free cash flow

EW4 strengths · Avg: 9.5/10
Operating MarginProfitability
31.2%10/10

Strong operational efficiency at 31.2%

Debt/EquityHealth
0.0710/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
4.4810/10

Safe zone — low bankruptcy risk

Revenue GrowthGrowth
16.7%8/10

16.7% revenue growth

Areas to Watch

CVS4 concerns · Avg: 3.0/10
Return on EquityProfitability
3.8%3/10

ROE of 3.8% — below average capital efficiency

Profit MarginProfitability
0.7%3/10

0.7% margin — thin

Operating MarginProfitability
4.1%3/10

Operating margin of 4.1%

Debt/EquityHealth
1.013/10

Elevated debt levels

EW4 concerns · Avg: 2.8/10
PEG RatioValuation
2.054/10

Expensive relative to growth rate

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

P/E RatioValuation
46.0x2/10

Premium valuation, high expectations priced in

Free Cash FlowQuality
$-21.10M2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : CVS

The strongest argument for CVS centers on PEG Ratio, EPS Growth, Market Cap. PEG of 0.28 suggests the stock is reasonably priced for its growth.

Bull Case : EW

The strongest argument for EW centers on Operating Margin, Debt/Equity, Altman Z-Score. Profitability is solid with margins at 17.4% and operating margin at 31.2%. Revenue growth of 16.7% demonstrates continued momentum.

Bear Case : CVS

The primary concerns for CVS are Return on Equity, Profit Margin, Operating Margin. A P/E of 44.2x leaves little room for execution misses. Thin 0.7% margins leave little buffer for downturns.

Bear Case : EW

The primary concerns for EW are PEG Ratio, Piotroski F-Score, P/E Ratio. A P/E of 46.0x leaves little room for execution misses.

Key Dynamics to Monitor

CVS profiles as a value stock while EW is a growth play — different risk/reward profiles.

EW carries more volatility with a beta of 0.87 — expect wider price swings.

EW is growing revenue faster at 16.7% — sustainability is the question.

CVS generates stronger free cash flow (3.4B), providing more financial flexibility.

Bottom Line

CVS scores higher overall (65/100 vs 61/100). EW offers better value entry with a 68.6% margin of safety. 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.

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Edwards Lifesciences Corp

HEALTHCARE · MEDICAL DEVICES · USA

Edwards Lifesciences is an American medical technology company headquartered in Irvine, California, specializing in artificial heart valves and hemodynamic monitoring.

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