CVS vs. TGT, ORLY, MELI, SBUX, CMG, JD, AZO, ROST, CPNG, and KR
Should you be buying CVS Health stock or one of its competitors? The main competitors of CVS Health include Target (TGT), O'Reilly Automotive (ORLY), MercadoLibre (MELI), Starbucks (SBUX), Chipotle Mexican Grill (CMG), JD.com (JD), AutoZone (AZO), Ross Stores (ROST), Coupang (CPNG), and Kroger (KR). These companies are all part of the "retail/wholesale" sector.
CVS Health (NYSE:CVS) and Target (NYSE:TGT) are both large-cap retail/wholesale companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, risk, earnings, profitability, valuation, analyst recommendations, institutional ownership, media sentiment and community ranking.
80.7% of CVS Health shares are owned by institutional investors. Comparatively, 79.7% of Target shares are owned by institutional investors. 0.2% of CVS Health shares are owned by insiders. Comparatively, 0.2% of Target shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Target has a net margin of 3.85% compared to CVS Health's net margin of 2.03%. Target's return on equity of 33.41% beat CVS Health's return on equity.
CVS Health has a beta of 0.56, meaning that its share price is 44% less volatile than the S&P 500. Comparatively, Target has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500.
Target received 6049 more outperform votes than CVS Health when rated by MarketBeat users. Likewise, 90.06% of users gave Target an outperform vote while only 75.93% of users gave CVS Health an outperform vote.
CVS Health pays an annual dividend of $2.66 per share and has a dividend yield of 4.6%. Target pays an annual dividend of $4.40 per share and has a dividend yield of 2.7%. CVS Health pays out 46.7% of its earnings in the form of a dividend. Target pays out 49.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. CVS Health is clearly the better dividend stock, given its higher yield and lower payout ratio.
CVS Health presently has a consensus price target of $76.75, indicating a potential upside of 33.06%. Target has a consensus price target of $181.85, indicating a potential upside of 13.56%. Given CVS Health's higher probable upside, analysts clearly believe CVS Health is more favorable than Target.
CVS Health has higher revenue and earnings than Target. CVS Health is trading at a lower price-to-earnings ratio than Target, indicating that it is currently the more affordable of the two stocks.
In the previous week, CVS Health had 30 more articles in the media than Target. MarketBeat recorded 39 mentions for CVS Health and 9 mentions for Target. Target's average media sentiment score of 0.52 beat CVS Health's score of 0.52 indicating that Target is being referred to more favorably in the news media.
Summary
Target beats CVS Health on 12 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding CVS and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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