CVS Stock vs WBA Stock - CVS Health vs Walgreens - Covid Vaccine Distribution | Summary and Q&A

TL;DR

CVS and Walgreens are well-positioned to distribute the COVID-19 vaccine and have potential for long-term investment, with CVS being preferred due to its acquisition of Aetna.

Key Insights

• 🏪 CVS and Walgreens are prepared to distribute the COVID-19 vaccine and leverage their physical store presence for revenue growth.
• ✋ CVS's acquisition of Aetna has contributed to its higher revenue and net income compared to Walgreens.
• 😀 Walgreens' focus on expanding its physical store footprint may face challenges from online competitors like Amazon.
• 🍉 Regulatory issues and government interference pose risks for both companies' long-term growth prospects.
• 🙃 Despite potential risks, discounted free cash flow valuations suggest significant upside potential for both CVS and Walgreens.
• ❓ CVS's strategic positioning and partnership with Aetna make it a more defensible investment option.
• 😘 Low profit margins and competition highlight the need for caution in investing in both companies.

Transcript

hi i'm jimmy in this video we're looking at cvs health ticker symbol cvs and walgreens boots alliance ticker symbol wba the goal here is with the covid19 vaccine being rolled out the goal here is to see if there are any good long-term investment opportunities with either one of these pharmacy related companies so we'll look quickly at both of their... Read More

Questions & Answers

Q: How is CVS involved in the distribution of the COVID-19 vaccine?

CVS has partnered with long-term care facilities and has testing capabilities in 5,000 locations, making it well-positioned to distribute the vaccine when it becomes readily available.

Q: What is the main difference in strategy between CVS and Walgreens?

CVS focuses on expanding through acquisitions and has acquired Aetna, contributing to its revenue growth. In contrast, Walgreens aims to expand its physical store footprint, which may be challenged by online competitors like Amazon.

Q: Why does CVS have higher revenue and net income compared to Walgreens?

CVS's acquisition of Aetna has contributed to its higher revenue and net income, giving it a more viable revenue growth strategy. Additionally, Walgreens faces stiff competition from Amazon in the online retail space.

Q: What are the potential risks for investing in CVS or Walgreens?

Both companies face potential regulatory challenges and competition from various sources. The government's involvement in healthcare and the possibility of interference could pose risks. Additionally, online competition and low profit margins may impact future growth prospects.

Summary & Key Takeaways

• CVS is partnered with 30,000 long-term care facilities to distribute the COVID-19 vaccine and has testing capabilities in 5,000 locations.

• Walgreens also has COVID-19 testing and distribution capabilities, but CVS's revenue and net income outperform Walgreens due to its acquisition of Aetna.

• CVS's strategy of expanding through acquisitions and its partnership with Aetna positions it better for long-term growth compared to Walgreens' focus on expanding store locations.