Better Buy: CVS Health vs. Walmart
Walmart (NYSE: WMT) holds a sizable advantage over many stocks. Its strong financials and diverse business make it a threat in any industry it moves into, including healthcare. But deciding if it's a better investment than well-known pharmacy retailer CVS Health (NYSE: CVS) involves more than just looking at what the two companies have achieved so far or the size of their sales numbers.
Investors also need to look at what's ahead, whether there are better growth opportunities for CVS or Walmart, and which stock is more likely to produce favorable returns for investors in the future. Let's take a look at how these two companies compare based on their growth prospects as well as their current valuations to assess which one investors are better off buying today.
Earlier this year, investors learned that Walmart remodeled its store in Calhoun, Georgia, to offer healthcare services at a second U.S. location. With convenience and low price being key factors for consumers, including offering services for patients with no insurance, it's easy to see the appeal of the big-box retailer. And if there's one thing Walmart can compete on, it's price. With some services like checkups and dental cleaning costing as little as $25 or $30, Walmart has the potential to lure many patients who can't afford healthcare elsewhere. Without insurance, patients can expect to pay traditional clinics at least $100 for a cleaning, so Walmart Health is much more affordable.
Source Fool.com
