CVS
CVS Health Corporation
Medical - Healthcare Plans
Market Cap$111.32B
5Y Perf.+32.5%
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Stock Comparison
CVS vs MCK
Revenue, margins, valuation, and 5-year total return — side by side.
MCK
McKesson Corporation
Medical - Distribution
Market Cap$91.09B
5Y Perf.+368.7%
CVS vs MCK — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | CVS | MCK |
|---|---|---|
| Industry | Medical - Healthcare Plans | Medical - Distribution |
| Market Cap | $111.32B | $91.09B |
| Revenue (TTM) | $407.90B | $397.96B |
| Net Income (TTM) | $2.93B | $4.34B |
| Gross Margin | 13.9% | 3.4% |
| Operating Margin | 1.5% | 1.3% |
| Forward P/E | 12.1x | 19.1x |
| Total Debt | $93.59B | $7.39B |
| Cash & Equiv. | $8.51B | $5.69B |
CVS vs MCK — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
CVS
MCK
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| CVS Health Corporat… (CVS) | 100 | 132.5 | +32.5% |
| McKesson Corporation (MCK) | 100 | 468.7 | +368.7% |
Price return only. Dividends and distributions are not included.
Quick Verdict: CVS vs MCK
Each card shows where this stock fits in a portfolio — not just who wins on paper.
Bottom line: MCK leads in 4 of 7 categories, making it the strongest pick for growth and revenue expansion and profitability and margin quality. CVS Health Corporation is the stronger pick specifically for valuation and capital efficiency and dividend income and shareholder returns. As sector peers, any of these can serve as alternatives in the same allocation.
CVS
CVS Health Corporation
The Insurance Pick
CVS is the clearest fit if your priority is value and dividends.
- Lower P/E (12.1x vs 19.1x)
- 3.1% yield, vs MCK's 0.4%
- +35.2% vs MCK's +5.0%
Best for: value and dividends
MCK
McKesson Corporation
The Income Pick
MCK carries the broadest edge in this set and is the clearest fit for income & stability and growth exposure.
- Dividend streak 17 yrs, beta 0.04, yield 0.4%
- Rev growth 16.2%, EPS growth 14.9%, 3Y rev CAGR 10.8%
- 351.9% 10Y total return vs CVS's 3.9%
Best for: income & stability and growth exposure
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | MCK | 16.2% revenue growth vs CVS's 7.8% |
| Value | CVS | Lower P/E (12.1x vs 19.1x) |
| Quality / Margins | MCK | 1.1% margin vs CVS's 0.7% |
| Stability / Safety | MCK | Beta 0.04 vs CVS's 0.05 |
| Dividends | CVS | 3.1% yield, vs MCK's 0.4% |
| Momentum (1Y) | CVS | +35.2% vs MCK's +5.0% |
| Efficiency (ROA) | MCK | 5.3% ROA vs CVS's 1.1%, ROIC 5.4% vs 5.0% |
CVS vs MCK — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
FY 2025
FY 2025
CVS vs MCK — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
BEST OVERALLMCKLAGGINGCVS
CVSCVS Health Corporation
1leads
MCKMcKesson Corporation
2leads
6 Total Categories
CATEGORYLEADERvs CVSMETRICS WON
Income & Cash FlowRevenue, margins, and cash flow strength
Tied
—
Valuation MetricsMultiples, price ratios, and targets
CVS3/5
Profitability & EfficiencyROE, ROIC, leverage, and quality scores
MCK7/7
Total Returns1Y, 3Y, 5Y total returns with dividends
MCK4/6
Risk & VolatilityBeta, volatility, and downside exposure
Tied
—
Analyst OutlookRatings, price targets, and dividends
Tied
—
Income & Cash Flow (Last 12 Months)
Evenly matched — CVS and MCK each lead in 3 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
CVS and MCK operate at a comparable scale, with $407.9B and $398.0B in trailing revenue. Profitability is closely matched — net margins range from 1.1% (MCK) to 0.7% (CVS). On growth, MCK holds the edge at +11.4% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | CVSCVS Health Corpor… | MCKMcKesson Corporat… |
|---|---|---|
| RevenueTrailing 12 months | $407.9B | $398.0B |
| EBITDAEarnings before interest/tax | $9.4B | $5.8B |
| Net IncomeAfter-tax profit | $2.9B | $4.3B |
| Free Cash FlowCash after capex | $7.4B | $10.1B |
| Gross MarginGross profit ÷ Revenue | +13.9% | +3.4% |
| Operating MarginEBIT ÷ Revenue | +1.5% | +1.3% |
| Net MarginNet income ÷ Revenue | +0.7% | +1.1% |
| FCF MarginFCF ÷ Revenue | +1.8% | +2.5% |
| Rev. Growth (YoY)Latest quarter vs prior year | +6.2% | +11.4% |
| EPS Growth (YoY)Latest quarter vs prior year | +63.1% | +38.2% |
Evenly matched — CVS and MCK each lead in 3 of 6 comparable metrics.
Valuation Metrics
CVS leads this category, winning 3 of 5 comparable metrics.
Valuation Metrics
At 28.9x trailing earnings, MCK trades at a 54% valuation discount to CVS's 62.5x P/E. On an enterprise value basis, CVS's 13.1x EV/EBITDA is more attractive than MCK's 18.5x.
| Metric | CVSCVS Health Corpor… | MCKMcKesson Corporat… |
|---|---|---|
| Market CapShares × price | $111.3B | $91.1B |
| Enterprise ValueMkt cap + debt − cash | $196.4B | $92.8B |
| Trailing P/EPrice ÷ TTM EPS | 62.49x | 28.91x |
| Forward P/EPrice ÷ next-FY EPS est. | 12.13x | 19.06x |
| PEG RatioP/E ÷ EPS growth rate | — | 0.74x |
| EV / EBITDAEnterprise value multiple | 13.10x | 18.53x |
| Price / SalesMarket cap ÷ Revenue | 0.28x | 0.25x |
| Price / BookPrice ÷ Book value/share | 1.46x | — |
| Price / FCFMarket cap ÷ FCF | 14.26x | 17.43x |
CVS leads this category, winning 3 of 5 comparable metrics.
Profitability & Efficiency
MCK leads this category, winning 7 of 7 comparable metrics.
Profitability & Efficiency
On the Piotroski fundamental quality scale (0–9), MCK scores 6/9 vs CVS's 5/9, reflecting solid financial health.
| Metric | CVSCVS Health Corpor… | MCKMcKesson Corporat… |
|---|---|---|
| ROE (TTM)Return on equity | +3.9% | — |
| ROA (TTM)Return on assets | +1.1% | +5.3% |
| ROICReturn on invested capital | +5.0% | +5.4% |
| ROCEReturn on capital employed | +6.1% | +30.5% |
| Piotroski ScoreFundamental quality 0–9 | 5 | 6 |
| Debt / EquityFinancial leverage | 1.24x | — |
| Net DebtTotal debt minus cash | $85.1B | $1.7B |
| Cash & Equiv.Liquid assets | $8.5B | $5.7B |
| Total DebtShort + long-term debt | $93.6B | $7.4B |
| Interest CoverageEBIT ÷ Interest expense | 4.19x | 25.04x |
MCK leads this category, winning 7 of 7 comparable metrics.
Total Returns (Dividends Reinvested)
MCK leads this category, winning 4 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in MCK five years ago would be worth $40,840 today (with dividends reinvested), compared to $11,843 for CVS. Over the past 12 months, CVS leads with a +35.2% total return vs MCK's +5.0%. The 3-year compound annual growth rate (CAGR) favors MCK at 26.8% vs CVS's 10.8% — a key indicator of consistent wealth creation.
| Metric | CVSCVS Health Corpor… | MCKMcKesson Corporat… |
|---|---|---|
| YTD ReturnYear-to-date | +10.1% | -9.6% |
| 1-Year ReturnPast 12 months | +35.2% | +5.0% |
| 3-Year ReturnCumulative with dividends | +35.9% | +104.0% |
| 5-Year ReturnCumulative with dividends | +18.4% | +308.4% |
| 10-Year ReturnCumulative with dividends | +3.9% | +351.9% |
| CAGR (3Y)Annualised 3-year return | +10.8% | +26.8% |
MCK leads this category, winning 4 of 6 comparable metrics.
Risk & Volatility
Evenly matched — CVS and MCK each lead in 1 of 2 comparable metrics.
Risk & Volatility
MCK is the less volatile stock with a 0.04 beta — it tends to amplify market swings less than CVS's 0.05 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. CVS currently trades 98.0% from its 52-week high vs MCK's 74.4% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | CVSCVS Health Corpor… | MCKMcKesson Corporat… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.05x | 0.04x |
| 52-Week HighHighest price in past year | $88.63 | $999.00 |
| 52-Week LowLowest price in past year | $58.35 | $637.00 |
| % of 52W HighCurrent price vs 52-week peak | +98.0% | +74.4% |
| RSI (14)Momentum oscillator 0–100 | 57.1 | 25.8 |
| Avg Volume (50D)Average daily shares traded | 7.4M | 737K |
Evenly matched — CVS and MCK each lead in 1 of 2 comparable metrics.
Analyst Outlook
Evenly matched — CVS and MCK each lead in 1 of 2 comparable metrics.
Analyst Outlook
Wall Street rates CVS as "Buy" and MCK as "Buy". Consensus price targets imply 35.3% upside for MCK (target: $1007) vs 9.6% for CVS (target: $95). For income investors, CVS offers the higher dividend yield at 3.08% vs MCK's 0.36%.
| Metric | CVSCVS Health Corpor… | MCKMcKesson Corporat… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $95.20 | $1006.50 |
| # AnalystsCovering analysts | 41 | 31 |
| Dividend YieldAnnual dividend ÷ price | +3.1% | +0.4% |
| Dividend StreakConsecutive years of raises | 0 | 17 |
| Dividend / ShareAnnual DPS | $2.67 | $2.69 |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | +3.5% |
Evenly matched — CVS and MCK each lead in 1 of 2 comparable metrics.
Key Takeaway
MCK leads in 2 of 6 categories (Profitability & Efficiency, Total Returns). CVS leads in 1 (Valuation Metrics). 3 tied.
Best OverallMcKesson Corporation (MCK)Leads 2 of 6 categories
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CVS vs MCK: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is CVS or MCK a better buy right now?
For growth investors, McKesson Corporation (MCK) is the stronger pick with 16.
2% revenue growth year-over-year, versus 7. 8% for CVS Health Corporation (CVS). McKesson Corporation (MCK) offers the better valuation at 28. 9x trailing P/E (19. 1x forward), making it the more compelling value choice. Analysts rate CVS Health Corporation (CVS) a "Buy" — based on 41 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — CVS or MCK?
On trailing P/E, McKesson Corporation (MCK) is the cheapest at 28.
9x versus CVS Health Corporation at 62. 5x. On forward P/E, CVS Health Corporation is actually cheaper at 12. 1x — notably different from the trailing picture, reflecting expected earnings growth.
03Which is the better long-term investment — CVS or MCK?
Over the past 5 years, McKesson Corporation (MCK) delivered a total return of +308.
4%, compared to +18. 4% for CVS Health Corporation (CVS). Over 10 years, the gap is even starker: MCK returned +351. 9% versus CVS's +3. 9%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — CVS or MCK?
By beta (market sensitivity over 5 years), McKesson Corporation (MCK) is the lower-risk stock at 0.
04β versus CVS Health Corporation's 0. 05β — meaning CVS is approximately 17% more volatile than MCK relative to the S&P 500.
05Which is growing faster — CVS or MCK?
By revenue growth (latest reported year), McKesson Corporation (MCK) is pulling ahead at 16.
2% versus 7. 8% for CVS Health Corporation (CVS). On earnings-per-share growth, the picture is similar: McKesson Corporation grew EPS 14. 9% year-over-year, compared to -62. 0% for CVS Health Corporation. Over a 3-year CAGR, MCK leads at 10. 8% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.
06Which has better profit margins — CVS or MCK?
McKesson Corporation (MCK) is the more profitable company, earning 0.
9% net margin versus 0. 4% for CVS Health Corporation — meaning it keeps 0. 9% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: CVS leads at 2. 6% versus 1. 2% for MCK. At the gross margin level — before operating expenses — CVS leads at 13. 8%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
07Is CVS or MCK more undervalued right now?
On forward earnings alone, CVS Health Corporation (CVS) trades at 12.
1x forward P/E versus 19. 1x for McKesson Corporation — 6. 9x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for MCK: 35. 3% to $1006. 50.
08Which pays a better dividend — CVS or MCK?
All stocks in this comparison pay dividends.
CVS Health Corporation (CVS) offers the highest yield at 3. 1%, versus 0. 4% for McKesson Corporation (MCK).
09Is CVS or MCK better for a retirement portfolio?
For long-horizon retirement investors, CVS Health Corporation (CVS) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.
05), 3. 1% yield). Both have compounded well over 10 years (CVS: +3. 9%, MCK: +351. 9%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
10What are the main differences between CVS and MCK?
Both stocks operate in the Healthcare sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.
In terms of investment character: CVS is a mid-cap income-oriented stock; MCK is a mid-cap high-growth stock. CVS pays a dividend while MCK does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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(CVS: 6.2% · MCK: 11.4%)P/E Ratio<
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