WallStSmart

CVS Health Corp (CVS)vsEli Lilly and Company (LLY)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

CVS Health Corp generates 418% more annual revenue ($412.64B vs $79.67B). LLY leads profitability with a 33.5% profit margin vs 1.2%. CVS appears more attractively valued with a PEG of 0.22. LLY earns a higher WallStSmart Score of 76/100 (B+).

CVS

Strong Buy

67

out of 100

Grade: B-

Growth: 7.3Profit: 4.0Value: 8.7Quality: 5.5
Piotroski: 4/9Altman Z: 2.11

LLY

Strong Buy

76

out of 100

Grade: B+

Growth: 9.3Profit: 10.0Value: 5.0Quality: 6.0
Piotroski: 6/9Altman Z: 2.06
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CVSUndervalued (+45.4%)

Margin of Safety

+45.4%

Fair Value

$141.12

Current Price

$94.66

$46.46 discount

UndervaluedFair: $141.12Overvalued

Intrinsic value data unavailable for LLY.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CVS5 strengths · Avg: 9.0/10
PEG RatioValuation
0.2210/10

Growing faster than its price suggests

EPS GrowthGrowth
188.8%10/10

Earnings expanding 188.8% YoY

Market CapQuality
$121.07B9/10

Large-cap with strong market position

Price/BookValuation
1.5x8/10

Reasonable price relative to book value

Free Cash FlowQuality
$5.65B8/10

Generating 5.7B in free cash flow

LLY6 strengths · Avg: 9.7/10
Market CapQuality
$994.92B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
78.8%10/10

Every $100 of equity generates 79 in profit

Profit MarginProfitability
33.5%10/10

Keeps 34 of every $100 in revenue as profit

Operating MarginProfitability
54.2%10/10

Strong operational efficiency at 54.2%

Revenue GrowthGrowth
47.7%10/10

Revenue surging 47.7% year-over-year

EPS GrowthGrowth
26.2%8/10

Earnings expanding 26.2% YoY

Areas to Watch

CVS4 concerns · Avg: 3.3/10
P/E RatioValuation
25.1x4/10

Moderate valuation

Return on EquityProfitability
6.2%3/10

ROE of 6.2% — below average capital efficiency

Profit MarginProfitability
1.2%3/10

1.2% margin — thin

Operating MarginProfitability
3.9%3/10

Operating margin of 3.9%

LLY3 concerns · Avg: 3.0/10
P/E RatioValuation
37.7x4/10

Premium valuation, high expectations priced in

Debt/EquityHealth
1.623/10

Elevated debt levels

Price/BookValuation
29.9x2/10

Trading at 29.9x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : CVS

The strongest argument for CVS centers on PEG Ratio, EPS Growth, Market Cap. PEG of 0.22 suggests the stock is reasonably priced for its growth.

Bull Case : LLY

The strongest argument for LLY centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 33.5% and operating margin at 54.2%. Revenue growth of 47.7% demonstrates continued momentum.

Bear Case : CVS

The primary concerns for CVS are P/E Ratio, Return on Equity, Profit Margin. Thin 1.2% margins leave little buffer for downturns.

Bear Case : LLY

The primary concerns for LLY are P/E Ratio, Debt/Equity, Price/Book. Debt-to-equity of 1.62 is elevated, increasing financial risk.

Key Dynamics to Monitor

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

CVS carries more volatility with a beta of 0.58 — expect wider price swings.

LLY is growing revenue faster at 47.7% — sustainability is the question.

LLY generates stronger free cash flow (7.8B), providing more financial flexibility.

Bottom Line

LLY scores higher overall (76/100 vs 67/100), backed by strong 33.5% margins and 47.7% revenue growth. CVS offers better value entry with a 45.4% margin of safety. Both earn "Strong Buy" and "Strong 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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Eli Lilly and Company

HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA

Eli Lilly and Company is an American pharmaceutical company headquartered in Indianapolis, Indiana, with offices in 18 countries. Its products are sold in approximately 125 countries.

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