Contrasting P3 Health Partners (NASDAQ:PIII) & CVS Health (NYSE:CVS)

CVS Health (NYSE:CVS) and P3 Health Partners (NASDAQ:PIII) are both healthcare companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, dividends, institutional ownership, profitability, analyst recommendations, earnings and risk.

Profitability

This table compares CVS Health and P3 Health Partners’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CVS Health	2.62%	13.65%	4.20%
P3 Health Partners	-3.30%	N/A	-9.38%

Insider and Institutional Ownership

80.7% of CVS Health shares are owned by institutional investors. Comparatively, 7.7% of P3 Health Partners shares are owned by institutional investors. 0.9% of CVS Health shares are owned by insiders. Comparatively, 10.9% of P3 Health Partners shares are owned by 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 & Risk

CVS Health has a beta of 0.58, indicating that its stock price is 42% less volatile than the S&P 500. Comparatively, P3 Health Partners has a beta of 1.81, indicating that its stock price is 81% more volatile than the S&P 500.

Valuation and Earnings

This table compares CVS Health and P3 Health Partners”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CVS Health	$402.07 billion	0.29	$1.77 billion	$8.59	10.44
P3 Health Partners	$1.46 billion	0.01	-$147.95 million	($23.26)	-0.12

CVS Health has higher revenue and earnings than P3 Health Partners. P3 Health Partners 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 Recommendations

This is a summary of current recommendations and price targets for CVS Health and P3 Health Partners, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CVS Health	0	2	23	0	2.92
P3 Health Partners	1	2	1	0	2.00

CVS Health currently has a consensus price target of $107.79, indicating a potential upside of 20.18%. P3 Health Partners has a consensus price target of $13.67, indicating a potential upside of 396.97%. Given P3 Health Partners’ higher probable upside, analysts plainly believe P3 Health Partners is more favorable than CVS Health.

Summary

CVS Health beats P3 Health Partners on 11 of the 14 factors compared between the two stocks.

About CVS Health

CVS Health is a U.S.-based health care company that operates retail pharmacies, provides pharmacy benefit management services, and offers health insurance and other health services. Its businesses include CVS Pharmacy, pharmacy benefit manager CVS Caremark, and Aetna, its health benefits division. The company also provides care through MinuteClinic walk-in clinics and health care businesses including Oak Street Health and Signify Health. Its services span prescription fulfillment, pharmacy benefit management, health insurance, primary care, and in-home and community-based care.

About P3 Health Partners

P3 Health Partners Inc. is a physician-led healthcare company focused on value-based care for Medicare Advantage beneficiaries. The company works with primary care physicians, specialists, health plans and community organizations to coordinate care and improve health outcomes while addressing patients’ medical and social needs. Its services include primary care support, care coordination, chronic-condition management, preventive care, medication management and patient navigation. P3’s model uses an integrated care team and data-driven clinical programs to help physicians manage the health of senior populations across the care continuum.