CVS Health (NYSE:CVS) and Dougherty’s Pharmacy (OTCMKTS:MYDP) are both retail/wholesale companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, profitability, earnings, valuation, analyst recommendations, risk and institutional ownership.
Insider and Institutional Ownership
84.5% of CVS Health shares are held by institutional investors. Comparatively, 0.5% of Dougherty’s Pharmacy shares are held by institutional investors. 0.5% of CVS Health shares are held by company insiders. Comparatively, 27.3% of Dougherty’s Pharmacy shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
CVS Health pays an annual dividend of $2.00 per share and has a dividend yield of 2.5%. Dougherty’s Pharmacy does not pay a dividend. CVS Health pays out 33.9% of its earnings in the form of a dividend. CVS Health has increased its dividend for 10 consecutive years.
This table compares CVS Health and Dougherty’s Pharmacy’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility & Risk
CVS Health has a beta of 0.98, suggesting that its stock price is 2% less volatile than the S&P 500. Comparatively, Dougherty’s Pharmacy has a beta of -0.64, suggesting that its stock price is 164% less volatile than the S&P 500.
Valuation & Earnings
This table compares CVS Health and Dougherty’s Pharmacy’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|CVS Health||$184.77 billion||0.44||$6.62 billion||$5.90||13.59|
|Dougherty’s Pharmacy||$40.21 million||0.02||-$2.10 million||N/A||N/A|
CVS Health has higher revenue and earnings than Dougherty’s Pharmacy.
This is a summary of current recommendations and price targets for CVS Health and Dougherty’s Pharmacy, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
CVS Health currently has a consensus target price of $90.62, suggesting a potential upside of 13.00%. Given CVS Health’s higher probable upside, research analysts clearly believe CVS Health is more favorable than Dougherty’s Pharmacy.
CVS Health beats Dougherty’s Pharmacy on 13 of the 15 factors compared between the two stocks.
CVS Health Company Profile
CVS Health Corporation, together with its subsidiaries, provides integrated pharmacy health care services. It operates through Pharmacy Services and Retail/LTC segments. The Pharmacy Services segment offers pharmacy benefit management solutions, such as plan design and administration, formulary management, Medicare Part D services, mail order, specialty pharmacy and infusion services, retail pharmacy network management services, prescription management systems, clinical services, disease management programs, and medical pharmacy management services. This segment serves employers, insurance companies, unions, government employee groups, health plans, Medicare Part D plans, managed Medicaid plans, plans offered on public and private exchanges, other sponsors of health benefit plans, and individuals under the CVS Caremark Pharmacy Services, Caremark, CVS Specialty, AccordantCare, SilverScript, Wellpartner, NovoLogix, Coram, Navarro Health Services, and ACS Pharmacy names. As of December 31, 2017, it had 23 retail specialty pharmacy stores, 18 specialty mail order pharmacies and 4 mail order dispensing pharmacies, and 83 branches for infusion and enteral services. The Retail/LTC segment sells prescription drugs, over-the-counter drugs, beauty products and cosmetics, personal care products, convenience foods, seasonal merchandise, and greeting cards, as well as offers photo finishing services. It has 9,803 retail stores in 49 states, the District of Columbia, Puerto Rico, and Brazil primarily under the CVS Pharmacy, CVS, CVS Pharmacy y más, Longs Drugs, Navarro Discount Pharmacy, and Drogaria Onofre names; online retail pharmacy Websites; and 37 onsite pharmacy stores, long-term care pharmacy operations, and retail health care clinics. The company was formerly known as CVS Caremark Corporation and changed its name to CVS Health Corporation in September 2014. CVS Health Corporation was founded in 1892 and is headquartered in Woonsocket, Rhode Island.
Dougherty’s Pharmacy Company Profile
Dougherty's Pharmacy, Inc., an investment firm, focuses on acquiring, managing, and growing community based pharmacies in the Southwest Region of the United States. Its flagship store is Dougherty's Pharmacy, a turn-key multi-service pharmacy located in Dallas, Texas. The company was formerly known as Ascendant Solutions, Inc. and changed its name to Dougherty's Pharmacy, Inc. in May 2017. Dougherty's Pharmacy, Inc. was founded in 1998 and is based in Dallas, Texas.
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