WallStSmart

CVS Health Corp (CVS)vsVerizon Communications Inc (VZ)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

CVS Health Corp generates 189% more annual revenue ($399.83B vs $138.19B). VZ leads profitability with a 12.4% profit margin vs 0.4%. CVS appears more attractively valued with a PEG of 0.21. CVS earns a higher WallStSmart Score of 65/100 (C+).

CVS

Buy

65

out of 100

Grade: C+

Growth: 7.3Profit: 4.0Value: 4.7Quality: 6.5
Piotroski: 4/9Altman Z: 2.11

VZ

Buy

62

out of 100

Grade: C+

Growth: 5.3Profit: 7.0Value: 7.3Quality: 3.8
Piotroski: 2/9Altman Z: 1.11
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CVSSignificantly Overvalued (-18.4%)

Margin of Safety

-18.4%

Fair Value

$65.05

Current Price

$72.18

$7.13 premium

UndervaluedFair: $65.05Overvalued
VZSignificantly Overvalued (-82.4%)

Margin of Safety

-82.4%

Fair Value

$27.61

Current Price

$50.37

$22.76 premium

UndervaluedFair: $27.61Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CVS5 strengths · Avg: 9.4/10
PEG RatioValuation
0.2110/10

Growing faster than its price suggests

Price/BookValuation
1.2x10/10

Reasonable price relative to book value

EPS GrowthGrowth
76.6%10/10

Earnings expanding 76.6% YoY

Market CapQuality
$92.62B9/10

Large-cap with strong market position

Free Cash FlowQuality
$2.61B8/10

Generating 2.6B in free cash flow

VZ5 strengths · Avg: 8.4/10
Market CapQuality
$214.72B10/10

Mega-cap, among the largest globally

P/E RatioValuation
12.5x8/10

Attractively priced relative to earnings

Price/BookValuation
2.0x8/10

Reasonable price relative to book value

Operating MarginProfitability
21.0%8/10

Strong operational efficiency at 21.0%

Free Cash FlowQuality
$4.37B8/10

Generating 4.4B in free cash flow

Areas to Watch

CVS4 concerns · Avg: 3.0/10
Return on EquityProfitability
2.3%3/10

ROE of 2.3% — below average capital efficiency

Profit MarginProfitability
0.4%3/10

0.4% margin — thin

Operating MarginProfitability
1.6%3/10

Operating margin of 1.6%

Debt/EquityHealth
1.243/10

Elevated debt levels

VZ4 concerns · Avg: 2.8/10
Revenue GrowthGrowth
2.0%4/10

2.0% revenue growth

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

EPS GrowthGrowth
-53.3%2/10

Earnings declined 53.3%

Altman Z-ScoreHealth
1.112/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : CVS

The strongest argument for CVS centers on PEG Ratio, Price/Book, EPS Growth. PEG of 0.21 suggests the stock is reasonably priced for its growth.

Bull Case : VZ

The strongest argument for VZ centers on Market Cap, P/E Ratio, Price/Book. PEG of 1.23 suggests the stock is reasonably priced for its growth.

Bear Case : CVS

The primary concerns for CVS are Return on Equity, Profit Margin, Operating Margin. A P/E of 52.4x leaves little room for execution misses. Thin 0.4% margins leave little buffer for downturns.

Bear Case : VZ

The primary concerns for VZ are Revenue Growth, Piotroski F-Score, EPS Growth.

Key Dynamics to Monitor

CVS carries more volatility with a beta of 0.46 — expect wider price swings.

CVS is growing revenue faster at 8.4% — sustainability is the question.

VZ generates stronger free cash flow (4.4B), providing more financial flexibility.

Monitor HEALTHCARE PLANS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

CVS scores higher overall (65/100 vs 62/100). 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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Verizon Communications Inc

COMMUNICATION SERVICES · TELECOM SERVICES · USA

Verizon Communications Inc. is an American multinational telecommunications conglomerate and a corporate component of the Dow Jones Industrial Average. The company is headquartered at 1095 Avenue of the Americas in Midtown Manhattan, New York City, but is incorporated in Delaware.

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