CVS Health (NYSE:CVS – Get Free Report) and P3 Health Partners (NASDAQ:PIII – Get Free Report) are both healthcare companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, earnings, institutional ownership, dividends, valuation and risk.
Institutional and Insider Ownership
80.7% of CVS Health shares are owned by institutional investors. Comparatively, 7.7% of P3 Health Partners shares are owned by institutional investors. 0.9% of CVS Health shares are owned by insiders. Comparatively, 10.9% of P3 Health Partners shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares CVS Health and P3 Health Partners”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CVS Health | $402.07 billion | 0.27 | $1.77 billion | $8.59 | 9.75 |
| P3 Health Partners | $1.46 billion | 0.02 | -$147.95 million | ($33.00) | -0.12 |
CVS Health has higher revenue and earnings than P3 Health Partners. P3 Health Partners is trading at a lower price-to-earnings ratio than CVS Health, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent ratings and price targets for CVS Health and P3 Health Partners, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CVS Health | 0 | 3 | 22 | 0 | 2.88 |
| P3 Health Partners | 1 | 2 | 1 | 0 | 2.00 |
CVS Health presently has a consensus target price of $108.25, suggesting a potential upside of 29.24%. P3 Health Partners has a consensus target price of $17.00, suggesting a potential upside of 325.00%. Given P3 Health Partners’ higher possible upside, analysts plainly believe P3 Health Partners is more favorable than CVS Health.
Volatility and Risk
CVS Health has a beta of 0.58, suggesting that its share price is 42% less volatile than the S&P 500. Comparatively, P3 Health Partners has a beta of 1.81, suggesting that its share price is 81% more volatile than the S&P 500.
Profitability
This table compares CVS Health and P3 Health Partners’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CVS Health | 2.62% | 13.65% | 4.20% |
| P3 Health Partners | -6.55% | N/A | -16.40% |
Summary
CVS Health beats P3 Health Partners on 11 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 P3 Health Partners
P3 Health Partners Inc., a patient-centered and physician-led population health management company, provides superior care services in the United States. It operates clinics and wellness centers. P3 Health Partners Inc. was founded in 2020 and is based in Henderson, Nevada.
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