MWI Veterinary Supply (NASDAQ: MWIV) and CVS Health Corporation (NYSE:CVS) are both non-cyclical consumer goods & services companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitabiliy, valuation, earnings, risk and institutional ownership.

Valuation & Earnings

This table compares MWI Veterinary Supply and CVS Health Corporation’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
MWI Veterinary Supply N/A N/A N/A N/A N/A
CVS Health Corporation $178.83 billion 0.44 $12.81 billion $4.80 16.24

CVS Health Corporation has higher revenue and earnings than MWI Veterinary Supply.

Insider and Institutional Ownership

81.9% of CVS Health Corporation shares are held by institutional investors. 0.6% of CVS Health Corporation shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and target prices for MWI Veterinary Supply and CVS Health Corporation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MWI Veterinary Supply 0 0 0 0 N/A
CVS Health Corporation 0 7 12 0 2.63

CVS Health Corporation has a consensus target price of $94.27, indicating a potential upside of 20.97%. Given CVS Health Corporation’s higher possible upside, analysts clearly believe CVS Health Corporation is more favorable than MWI Veterinary Supply.

Dividends

CVS Health Corporation pays an annual dividend of $2.00 per share and has a dividend yield of 2.6%. MWI Veterinary Supply does not pay a dividend. CVS Health Corporation pays out 41.7% of its earnings in the form of a dividend. MWI Veterinary Supply has raised its dividend for 9 consecutive years.

Profitability

This table compares MWI Veterinary Supply and CVS Health Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MWI Veterinary Supply 2.51% 15.74% 7.86%
CVS Health Corporation 2.86% 17.56% 6.64%

Summary

CVS Health Corporation beats MWI Veterinary Supply on 8 of the 11 factors compared between the two stocks.

MWI Veterinary Supply Company Profile

MWI Veterinary Supply, Inc. (MWI) is a distributor of animal health products to veterinarians across the United States of America and United Kingdom. MWI sells both companion animal and production animal products including pharmaceuticals, vaccines, parasiticides, diagnostics, micro feed ingredients, supplies, pet food, capital equipment and nutritional products. MWI also offers customers a variety of value-added services, including its e-commerce platform, technology management systems, pharmacy fulfillment, inventory management system, equipment procurement consultation, special order fulfillment, educational seminars and pet cremation. As of September 30, 2014, the Company operates 23 distribution centers located across the United States and one distribution center in the United Kingdom.

CVS Health Corporation Company Profile

CVS Health Corporation, together with its subsidiaries, is an integrated pharmacy healthcare company. The Company provides pharmacy care for the senior community through Omnicare, Inc. (Omnicare) and Omnicare’s long-term care (LTC) operations, which include distribution of pharmaceuticals, related pharmacy consulting and other ancillary services to chronic care facilities and other care settings. It operates through three segments: Pharmacy Services, Retail/LTC and Corporate. The Pharmacy Services Segment provides a range of pharmacy benefit management (PBM) solutions to its clients. As of December 31, 2016, the Retail/LTC Segment included 9,709 retail locations (of which 7,980 were its stores that operated a pharmacy and 1,674 were its pharmacies located within Target Corporation (Target) stores), its online retail pharmacy Websites, CVS.com, Navarro.com and Onofre.com.br, 38 onsite pharmacy stores, its long-term care pharmacy operations and its retail healthcare clinics.

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