Diplomat Pharmacy (DPLO) vs. CVS Health (CVS) Head-To-Head Contrast

Diplomat Pharmacy (NYSE: DPLO) and CVS Health (NYSE:CVS) are both retail/wholesale companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, earnings, risk, profitability, analyst recommendations, institutional ownership and valuation.

Dividends

CVS Health pays an annual dividend of $2.00 per share and has a dividend yield of 3.1%. Diplomat Pharmacy does not pay a dividend. CVS Health pays out 33.9% of its earnings in the form of a dividend. CVS Health has increased its dividend for 10 consecutive years.

Institutional & Insider Ownership

64.3% of Diplomat Pharmacy shares are owned by institutional investors. Comparatively, 84.0% of CVS Health shares are owned by institutional investors. 30.2% of Diplomat Pharmacy shares are owned by company insiders. Comparatively, 0.5% of CVS Health shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Diplomat Pharmacy and CVS Health’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Diplomat Pharmacy $4.49 billion 0.41 $15.51 million $0.84 29.24
CVS Health $184.77 billion 0.36 $6.62 billion $5.90 11.00

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

Volatility and Risk

Diplomat Pharmacy has a beta of 1.31, suggesting that its share price is 31% more volatile than the S&P 500. Comparatively, CVS Health has a beta of 1.02, suggesting that its share price is 2% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Diplomat Pharmacy 0.23% 8.80% 4.07%
CVS Health 3.59% 17.45% 6.10%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Diplomat Pharmacy and CVS Health, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Diplomat Pharmacy 0 5 6 0 2.55
CVS Health 0 6 11 2 2.79

Diplomat Pharmacy presently has a consensus price target of $26.35, suggesting a potential upside of 7.29%. CVS Health has a consensus price target of $86.88, suggesting a potential upside of 33.82%. Given CVS Health’s stronger consensus rating and higher possible upside, analysts plainly believe CVS Health is more favorable than Diplomat Pharmacy.

Summary

CVS Health beats Diplomat Pharmacy on 13 of the 18 factors compared between the two stocks.

Diplomat Pharmacy Company Profile

Diplomat Pharmacy, Inc. operates as an independent specialty pharmacy in the United States. The company stocks, dispenses, and distributes prescriptions for various biotechnology and specialty pharmaceutical manufacturers. It also provides specialty infusion pharmacy, patient care coordination, clinical, compliance and persistency program, patient financial assistance, specialty pharmacy training/consulting, benefits investigation, prior authorization, risk evaluation and medication strategy, retail specialty, and hub services, as well as clinical and administrative support services to hospitals and health systems. The company's primary focus is on medication management programs for individuals with complex chronic diseases, including oncology, immunology, hepatitis, multiple sclerosis, specialized infusion therapy, and various other serious or long-term conditions. The company was founded in 1975 and is headquartered in Flint, Michigan.

CVS Health Company Profile

CVS Health Corporation, together with its subsidiaries, provides integrated pharmacy health care services. It operates through Pharmacy Services and Retail/LTC segments. The Pharmacy Services segment offers pharmacy benefit management solutions, such as plan design and administration, formulary management, Medicare Part D services, mail order, specialty pharmacy and infusion services, retail pharmacy network management services, prescription management systems, clinical services, disease management programs, and medical pharmacy management services. This segment serves employers, insurance companies, unions, government employee groups, health plans, Medicare Part D plans, managed Medicaid plans, plans offered on public and private exchanges, other sponsors of health benefit plans, and individuals under the CVS Caremark Pharmacy Services, Caremark, CVS Specialty, AccordantCare, SilverScript, Wellpartner, NovoLogix, Coram, Navarro Health Services, and ACS Pharmacy names. As of December 31, 2017, it had 23 retail specialty pharmacy stores, 18 specialty mail order pharmacies and 4 mail order dispensing pharmacies, and 83 branches for infusion and enteral services. The Retail/LTC segment sells prescription drugs, over-the-counter drugs, beauty products and cosmetics, personal care products, convenience foods, seasonal merchandise, and greeting cards, as well as offers photo finishing services. It has 9,803 retail stores in 49 states, the District of Columbia, Puerto Rico, and Brazil primarily under the CVS Pharmacy, CVS, CVS Pharmacy y más, Longs Drugs, Navarro Discount Pharmacy, and Drogaria Onofre names; online retail pharmacy Websites; and 37 onsite pharmacy stores, long-term care pharmacy operations, and retail health care clinics. The company was formerly known as CVS Caremark Corporation and changed its name to CVS Health Corporation in September 2014. CVS Health Corporation was founded in 1892 and is headquartered in Woonsocket, Rhode Island.

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