Financial Survey: CVS Health (NYSE:CVS) vs. BG Medicine (OTCMKTS:BGMD)

CVS Health (NYSE:CVS) and BG Medicine (OTCMKTS:BGMD) are both medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, dividends, profitability, analyst recommendations, institutional ownership, risk and valuation.

Insider & Institutional Ownership

80.7% of CVS Health shares are owned by institutional investors. 1.2% of CVS Health shares are owned by company insiders. Comparatively, 6.5% of BG Medicine shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and target prices for CVS Health and BG Medicine, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CVS Health	0	3	19	2	2.96
BG Medicine	0	0	0	0	0.00

CVS Health currently has a consensus target price of $77.89, suggesting a potential upside of 3.86%. Given CVS Health’s stronger consensus rating and higher possible upside, analysts plainly believe CVS Health is more favorable than BG Medicine.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CVS Health	1.17%	10.51%	3.15%
BG Medicine	N/A	N/A	N/A

Valuation & Earnings

This table compares CVS Health and BG Medicine”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CVS Health	$372.81 billion	0.26	$4.61 billion	$3.58	20.95
BG Medicine	N/A	N/A	N/A	N/A	N/A

CVS Health has higher revenue and earnings than BG Medicine.

Volatility and Risk

CVS Health has a beta of 0.62, suggesting that its share price is 38% less volatile than the S&P 500. Comparatively, BG Medicine has a beta of 2.79, suggesting that its share price is 179% more volatile than the S&P 500.

Summary

CVS Health beats BG Medicine on 9 of the 11 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 BG Medicine

BG Medicine, Inc. engages in the development and commercialization of diagnostic products used to guide the patients suffering from heart failure and related disorders in the United States. The company offers BGM Galectin-3 Test, an in vitro diagnostic device that measures galectin-3 in serum or plasma by enzyme linked immunosorbent assay on a microtiter plate platform; and CardioSCORE Test, a multi-analyte biomarker-based blood test used for the assessment of near-term risk of atherothrombotic cardiovascular events, such as heart attack and ischemic stroke. It has license, development, and commercialization agreements with Abbott Laboratories, bioMérieux SA, Siemens Healthcare Diagnostics Inc., and Alere Inc. for the automated instrument versions of galectin-3 test; and a strategic collaboration with Abbott Laboratories to develop and commercialize galectin-3 assay kits, and related control kits and calibrators. The company was formerly known as Beyond Genomics, Inc. and changed its name to BG Medicine, Inc. in October 2004. BG Medicine, Inc. was founded in 2000 and is headquartered in Waltham, Massachusetts.