Diplomat Pharmacy (NYSE: DPLO) and CVS Health (NYSE:CVS) are both retail/wholesale companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, earnings, profitability, analyst recommendations, risk, institutional ownership and valuation.
This is a breakdown of recent recommendations and price targets for Diplomat Pharmacy and CVS Health, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Diplomat Pharmacy currently has a consensus target price of $26.35, suggesting a potential upside of 4.52%. CVS Health has a consensus target price of $86.88, suggesting a potential upside of 32.11%. Given CVS Health’s stronger consensus rating and higher possible upside, analysts clearly believe CVS Health is more favorable than Diplomat Pharmacy.
Institutional & Insider Ownership
64.3% of Diplomat Pharmacy shares are held by institutional investors. Comparatively, 84.0% of CVS Health shares are held by institutional investors. 30.2% of Diplomat Pharmacy shares are held by insiders. Comparatively, 0.5% of CVS Health shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
CVS Health pays an annual dividend of $2.00 per share and has a dividend yield of 3.0%. Diplomat Pharmacy does not pay a dividend. CVS Health pays out 33.9% of its earnings in the form of a dividend. CVS Health has raised its dividend for 10 consecutive years.
Volatility and Risk
Diplomat Pharmacy has a beta of 1.31, suggesting that its stock price is 31% more volatile than the S&P 500. Comparatively, CVS Health has a beta of 1.02, suggesting that its stock price is 2% more volatile than the S&P 500.
This table compares Diplomat Pharmacy and CVS Health’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings & Valuation
This table compares Diplomat Pharmacy and CVS Health’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Diplomat Pharmacy||$4.49 billion||0.42||$15.51 million||$0.84||30.01|
|CVS Health||$184.77 billion||0.36||$6.62 billion||$5.90||11.15|
CVS Health has higher revenue and earnings than Diplomat Pharmacy. CVS Health is trading at a lower price-to-earnings ratio than Diplomat Pharmacy, indicating that it is currently the more affordable of the two stocks.
CVS Health beats Diplomat Pharmacy on 13 of the 18 factors compared between the two stocks.
About Diplomat Pharmacy
Diplomat Pharmacy, Inc. operates as an independent specialty pharmacy in the United States. The company stocks, dispenses, and distributes prescriptions for various biotechnology and specialty pharmaceutical manufacturers. It also provides specialty infusion pharmacy, patient care coordination, clinical, compliance and persistency program, patient financial assistance, specialty pharmacy training/consulting, benefits investigation, prior authorization, risk evaluation and medication strategy, retail specialty, and hub services, as well as clinical and administrative support services to hospitals and health systems. The company's primary focus is on medication management programs for individuals with complex chronic diseases, including oncology, immunology, hepatitis, multiple sclerosis, specialized infusion therapy, and various other serious or long-term conditions. The company was founded in 1975 and is headquartered in Flint, Michigan.
About CVS Health
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.
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