COMPASS Pathways (NASDAQ:CMPS – Get Free Report) and CVS Health (NYSE:CVS – Get Free Report) are both medical companies, but which is the better business? We will contrast the two companies based on the strength of their risk, analyst recommendations, earnings, institutional ownership, valuation, dividends and profitability.
Insider and Institutional Ownership
46.2% of COMPASS Pathways shares are owned by institutional investors. Comparatively, 80.7% of CVS Health shares are owned by institutional investors. 3.9% of COMPASS Pathways shares are owned by company insiders. Comparatively, 1.2% of CVS Health shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Profitability
This table compares COMPASS Pathways and CVS Health’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| COMPASS Pathways | N/A | -111.18% | -56.55% |
| CVS Health | 0.12% | 11.45% | 3.40% |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| COMPASS Pathways | 1 | 1 | 7 | 0 | 2.67 |
| CVS Health | 0 | 4 | 21 | 2 | 2.93 |
COMPASS Pathways presently has a consensus price target of $15.88, suggesting a potential upside of 203.25%. CVS Health has a consensus price target of $89.41, suggesting a potential upside of 14.64%. Given COMPASS Pathways’ higher probable upside, equities research analysts plainly believe COMPASS Pathways is more favorable than CVS Health.
Risk & Volatility
COMPASS Pathways has a beta of 2.22, meaning that its share price is 122% more volatile than the S&P 500. Comparatively, CVS Health has a beta of 0.6, meaning that its share price is 40% less volatile than the S&P 500.
Earnings and Valuation
This table compares COMPASS Pathways and CVS Health”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| COMPASS Pathways | N/A | N/A | -$155.12 million | ($2.72) | -1.92 |
| CVS Health | $394.08 billion | 0.25 | $4.61 billion | $0.38 | 205.24 |
CVS Health has higher revenue and earnings than COMPASS Pathways. COMPASS Pathways is trading at a lower price-to-earnings ratio than CVS Health, indicating that it is currently the more affordable of the two stocks.
Summary
CVS Health beats COMPASS Pathways on 11 of the 14 factors compared between the two stocks.
About COMPASS Pathways
COMPASS Pathways plc operates as a mental health care company in the United Kingdom and the United States. It develops COMP360, a psilocybin therapy that is in Phase III clinical trials for the treatment of treatment-resistant depression; and is in Phase II clinical trials for the treatment of post-traumatic stress disorder and anorexia nervosa. The company was formerly known as COMPASS Rx Limited and changed its name to COMPASS Pathways plc in August 2020. COMPASS Pathways plc was incorporated in 2020 and is headquartered in London, the United Kingdom.
About CVS Health
CVS Health Corporation provides health solutions in the United States. It operates through Health Care Benefits, Health Services, and Pharmacy & Consumer Wellness segments. The Health Care Benefits segment offers traditional, voluntary, and consumer-directed health insurance products and related services. It serves employer groups, individuals, college students, part-time and hourly workers, health plans, health care providers, governmental units, government-sponsored plans, labor groups, and expatriates. The Health Services segment offers pharmacy benefit management solutions, including plan design and administration, formulary management, retail pharmacy network management, specialty and mail order pharmacy, clinical, disease management, and medical spend management services. It serves employers, insurance companies, unions, government employee groups, health plans, prescription drug plans, Medicaid managed care plans, CMS, plans offered on public health insurance, and other sponsors of health benefit plans. The Pharmacy & Consumer Wellness segment sells prescription and over-the-counter drugs, consumer health and beauty products, and personal care products. This segment also distributes prescription drugs; and provides related pharmacy consulting and other ancillary services to care facilities and other care settings. It operates online retail pharmacy websites, LTC pharmacies and on-site pharmacies, retail specialty pharmacy stores, compounding pharmacies and branches for infusion and enteral nutrition services. The company was formerly known as CVS Caremark Corporation and changed its name to CVS Health Corporation in September 2014. CVS Health Corporation was incorporated in 1996 and is headquartered in Woonsocket, Rhode Island.
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