Head to Head Analysis: Pharmerica Corporation (PMC) vs. CVS Health Corporation (CVS)
Pharmerica Corporation (NYSE: PMC) and CVS Health Corporation (NYSE:CVS) are both medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, dividends, earnings, analyst recommendations, profitabiliy, institutional ownership and risk.
Insider and Institutional Ownership
92.7% of Pharmerica Corporation shares are held by institutional investors. Comparatively, 81.9% of CVS Health Corporation shares are held by institutional investors. 5.0% of Pharmerica Corporation shares are held by insiders. Comparatively, 0.6% of CVS Health Corporation shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
CVS Health Corporation pays an annual dividend of $2.00 per share and has a dividend yield of 2.6%. Pharmerica Corporation does not pay a dividend. CVS Health Corporation pays out 41.7% of its earnings in the form of a dividend. CVS Health Corporation has increased its dividend for 9 consecutive years.
This table compares Pharmerica Corporation and CVS Health Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|CVS Health Corporation||2.86%||17.56%||6.64%|
Valuation & Earnings
This table compares Pharmerica Corporation and CVS Health Corporation’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Pharmerica Corporation||$2.13 billion||0.38||$130.20 million||$0.67||38.43|
|CVS Health Corporation||$178.83 billion||0.44||$12.81 billion||$4.80||16.24|
CVS Health Corporation has higher revenue and earnings than Pharmerica Corporation. CVS Health Corporation is trading at a lower price-to-earnings ratio than Pharmerica Corporation, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Pharmerica Corporation has a beta of 0.93, indicating that its share price is 7% less volatile than the S&P 500. Comparatively, CVS Health Corporation has a beta of 0.91, indicating that its share price is 9% less volatile than the S&P 500.
This is a summary of recent ratings and price targets for Pharmerica Corporation and CVS Health Corporation, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|CVS Health Corporation||0||7||12||0||2.63|
CVS Health Corporation has a consensus target price of $94.27, suggesting a potential upside of 20.97%. Given CVS Health Corporation’s higher probable upside, analysts clearly believe CVS Health Corporation is more favorable than Pharmerica Corporation.
CVS Health Corporation beats Pharmerica Corporation on 11 of the 16 factors compared between the two stocks.
Pharmerica Corporation Company Profile
PharMerica Corporation is an institutional pharmacy services company. The Company services healthcare facilities, provides pharmacy management services to hospitals and specialty infusion services to patients outside a hospital setting, and offers the national oncology pharmacy in the United States. Its segments include institutional pharmacy, which provides pharmacy products and services to residents and patients in skilled nursing facilities, nursing centers, assisted living facilities, hospitals and other long-term alternative care settings; specialty infusion services, which provides specialty infusion services focused on providing pharmaceutical products and clinical services to patients in client facilities, hospice and outside of hospital or nursing home settings, and specialty oncology pharmacy, which provides dispensing of oncology drugs, care management and other related services to patients, oncology practices and hospitals.
CVS Health Corporation Company Profile
CVS Health Corporation, together with its subsidiaries, is an integrated pharmacy healthcare company. The Company provides pharmacy care for the senior community through Omnicare, Inc. (Omnicare) and Omnicare’s long-term care (LTC) operations, which include distribution of pharmaceuticals, related pharmacy consulting and other ancillary services to chronic care facilities and other care settings. It operates through three segments: Pharmacy Services, Retail/LTC and Corporate. The Pharmacy Services Segment provides a range of pharmacy benefit management (PBM) solutions to its clients. As of December 31, 2016, the Retail/LTC Segment included 9,709 retail locations (of which 7,980 were its stores that operated a pharmacy and 1,674 were its pharmacies located within Target Corporation (Target) stores), its online retail pharmacy Websites, CVS.com, Navarro.com and Onofre.com.br, 38 onsite pharmacy stores, its long-term care pharmacy operations and its retail healthcare clinics.
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