Comparing Medpace (NASDAQ:MEDP) and CVS Health (NYSE:CVS)

Medpace (NASDAQ:MEDP) and CVS Health (NYSE:CVS) are both large-cap medical companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, institutional ownership, analyst recommendations, risk, valuation, dividends and profitability.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Medpace	18.36%	91.88%	23.65%
CVS Health	0.12%	11.45%	3.40%

Insider & Institutional Ownership

78.0% of Medpace shares are owned by institutional investors. Comparatively, 80.7% of CVS Health shares are owned by institutional investors. 20.3% of Medpace shares are owned by company insiders. Comparatively, 1.2% 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 is poised for long-term growth.

Volatility and Risk

Medpace has a beta of 1.43, meaning that its share price is 43% more volatile than the S&P 500. Comparatively, CVS Health has a beta of 0.48, meaning that its share price is 52% less volatile than the S&P 500.

Earnings & Valuation

This table compares Medpace and CVS Health”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Medpace	$2.11 billion	7.58	$404.39 million	$14.30	39.69
CVS Health	$372.81 billion	0.27	$4.61 billion	$0.38	209.46

CVS Health has higher revenue and earnings than Medpace. Medpace 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 breakdown of recent ratings for Medpace and CVS Health, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Medpace	4	10	2	1	2.00
CVS Health	0	4	20	2	2.92

Medpace presently has a consensus price target of $490.82, suggesting a potential downside of 13.52%. CVS Health has a consensus price target of $94.67, suggesting a potential upside of 18.94%. Given CVS Health’s stronger consensus rating and higher possible upside, analysts clearly believe CVS Health is more favorable than Medpace.

Summary

CVS Health beats Medpace on 8 of the 15 factors compared between the two stocks.

About Medpace

Medpace Holdings, Inc. engages in the provision of outsourced clinical development services to the biotechnology, pharmaceutical and medical device industries. Its services include medical department, clinical trial management, data-driven feasibility, study-start-up, clinical monitoring, regulatory affairs, patient recruitment and retention, medical writing, biometrics and data sciences, pharmacovigilance, core laboratory, laboratories, clinics, and quality assurance. The company was founded by August James Troendle in 1992 and is headquartered in Cincinnati, OH.

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.