CVS Health (NYSE:CVS) vs. InnovAge (NASDAQ:INNV) Critical Contrast

CVS Health (NYSE:CVS) and InnovAge (NASDAQ:INNV) are both medical companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, earnings, dividends, institutional ownership, profitability, analyst recommendations and risk.

Earnings and Valuation

This table compares CVS Health and InnovAge”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CVS Health	$402.07 billion	0.29	$1.77 billion	$2.27	40.36
InnovAge	$853.70 million	1.13	-$30.31 million	($0.09)	-78.67

CVS Health has higher revenue and earnings than InnovAge. InnovAge is trading at a lower price-to-earnings ratio than CVS Health, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares CVS Health and InnovAge’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CVS Health	0.72%	11.88%	3.54%
InnovAge	-1.22%	-4.73%	-2.20%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for CVS Health and InnovAge, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CVS Health	0	4	22	0	2.85
InnovAge	2	1	0	0	1.33

CVS Health presently has a consensus price target of $99.68, indicating a potential upside of 8.81%. InnovAge has a consensus price target of $7.00, indicating a potential downside of 1.13%. Given CVS Health’s stronger consensus rating and higher possible upside, analysts plainly believe CVS Health is more favorable than InnovAge.

Insider & Institutional Ownership

80.7% of CVS Health shares are owned by institutional investors. Comparatively, 12.3% of InnovAge shares are owned by institutional investors. 0.9% of CVS Health shares are owned by company insiders. Comparatively, 1.0% of InnovAge shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Volatility & Risk

CVS Health has a beta of 0.62, suggesting that its stock price is 38% less volatile than the S&P 500. Comparatively, InnovAge has a beta of 0.45, suggesting that its stock price is 55% less volatile than the S&P 500.

Summary

CVS Health beats InnovAge on 12 of the 14 factors compared between the two stocks.

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.

About InnovAge

InnovAge Holding Corp. manages and provides a range of medical and ancillary services for seniors in need of care and support to live independently in its homes and communities. The company manages its business through Program of All-Inclusive Care for the Elderly (PACE) approach. It also offers in-home care services consisting of skilled, unskilled, and personal care; in-center services, such as primary care, physical therapy, occupational therapy, speech therapy, dental services, mental health and psychiatric services, meals, and activities; transportation to the PACE center and third-party medical appointments; and care management. The company serves participants in the United States; and operates PACE centers in Colorado, California, New Mexico, Pennsylvania, Florida, and Virginia. The company was formerly known as TCO Group Holdings, Inc. and changed its name to InnovAge Holding Corp. in January 2021. InnovAge Holding Corp. was founded in 2007 and is headquartered in Denver, Colorado.