CVS vs. SBUX, TJX, CMG, TGT, MELI, BKNG, ORLY, AZO, LOW, and ROST
Should you be buying CVS Health stock or one of its competitors? The main competitors of CVS Health include Starbucks (SBUX), TJX Companies (TJX), Chipotle Mexican Grill (CMG), Target (TGT), MercadoLibre (MELI), Booking (BKNG), O'Reilly Automotive (ORLY), AutoZone (AZO), Lowe's Companies (LOW), and Ross Stores (ROST). These companies are all part of the "retail/wholesale" sector.
Starbucks (NASDAQ:SBUX) and CVS Health (NYSE:CVS) are both large-cap retail/wholesale companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, media sentiment, valuation, risk, earnings, profitability, institutional ownership, analyst recommendations and community ranking.
In the previous week, Starbucks had 19 more articles in the media than CVS Health. MarketBeat recorded 37 mentions for Starbucks and 18 mentions for CVS Health. Starbucks' average media sentiment score of 0.53 beat CVS Health's score of 0.44 indicating that CVS Health is being referred to more favorably in the news media.
Starbucks has a net margin of 11.70% compared to Starbucks' net margin of 2.33%. Starbucks' return on equity of 15.25% beat CVS Health's return on equity.
CVS Health has higher revenue and earnings than Starbucks. CVS Health is trading at a lower price-to-earnings ratio than Starbucks, indicating that it is currently the more affordable of the two stocks.
Starbucks presently has a consensus price target of $110.05, suggesting a potential upside of 20.27%. CVS Health has a consensus price target of $90.21, suggesting a potential upside of 13.57%. Given CVS Health's higher probable upside, equities research analysts plainly believe Starbucks is more favorable than CVS Health.
Starbucks received 672 more outperform votes than CVS Health when rated by MarketBeat users. Likewise, 77.14% of users gave Starbucks an outperform vote while only 76.17% of users gave CVS Health an outperform vote.
72.3% of Starbucks shares are held by institutional investors. Comparatively, 80.7% of CVS Health shares are held by institutional investors. 2.0% of Starbucks shares are held by company insiders. Comparatively, 0.3% 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 company is poised for long-term growth.
Starbucks has a beta of 0.98, indicating that its share price is 2% less volatile than the S&P 500. Comparatively, CVS Health has a beta of 0.51, indicating that its share price is 49% less volatile than the S&P 500.
Starbucks pays an annual dividend of $2.28 per share and has a dividend yield of 2.5%. CVS Health pays an annual dividend of $2.66 per share and has a dividend yield of 3.3%. Starbucks pays out 61.0% of its earnings in the form of a dividend. CVS Health pays out 41.2% 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. Starbucks has increased its dividend for 14 consecutive years and CVS Health has increased its dividend for 2 consecutive years. CVS Health is clearly the better dividend stock, given its higher yield and lower payout ratio.
Summary
Starbucks beats CVS Health on 11 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.
Skip ChartThis 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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