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.
Target (NYSE:TGT) and CVS Health (NYSE:CVS) are both large-cap retail/wholesale companies, but which is the superior business? We will contrast the two businesses based on the strength of their media sentiment, community ranking, valuation, profitability, dividends, analyst recommendations, earnings, institutional ownership and risk.
Target currently has a consensus target price of $181.85, suggesting a potential upside of 14.23%. CVS Health has a consensus target price of $76.75, suggesting a potential upside of 37.50%. Given Target'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 36 more articles in the media than Target. MarketBeat recorded 44 mentions for CVS Health and 8 mentions for Target. CVS Health's average media sentiment score of 0.45 beat Target's score of 0.44 indicating that Target is being referred to more favorably in the media.
Target has a net margin of 3.85% compared to Target's net margin of 2.03%. CVS Health's return on equity of 33.41% beat Target's return on equity.
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.
Target pays an annual dividend of $4.40 per share and has a dividend yield of 2.8%. CVS Health pays an annual dividend of $2.66 per share and has a dividend yield of 4.8%. Target pays out 49.3% of its earnings in the form of a dividend. CVS Health pays out 46.7% 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. Target has raised its dividend for 53 consecutive years and CVS Health has raised its dividend for 3 consecutive years. CVS Health is clearly the better dividend stock, given its higher yield and lower payout ratio.
Target has a beta of 1.16, suggesting that its stock price is 16% more volatile than the S&P 500. Comparatively, CVS Health has a beta of 0.56, suggesting that its stock price is 44% less volatile than the S&P 500.
79.7% of Target shares are held by institutional investors. Comparatively, 80.7% of CVS Health shares are held by institutional investors. 0.2% of Target shares are held by company insiders. Comparatively, 0.2% of CVS Health shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Summary
Target beats CVS Health on 13 of the 21 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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