Analyzing Revvity (NYSE:RVTY) and CVS Health (NYSE:CVS)

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

Institutional and Insider Ownership

80.7% of CVS Health shares are owned by institutional investors. Comparatively, 86.7% of Revvity shares are owned by institutional investors. 0.9% of CVS Health shares are owned by company insiders. Comparatively, 0.9% of Revvity shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CVS Health	0.72%	11.88%	3.54%
Revvity	8.26%	8.00%	4.83%

Dividends

CVS Health pays an annual dividend of $2.66 per share and has a dividend yield of 2.5%. Revvity pays an annual dividend of $0.28 per share and has a dividend yield of 0.3%. CVS Health pays out 117.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Revvity pays out 13.4% of its earnings in the form of a dividend. CVS Health has raised its dividend for 4 consecutive years. CVS Health is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CVS Health	$402.07 billion	0.34	$1.77 billion	$2.27	47.30
Revvity	$2.86 billion	4.30	$241.20 million	$2.09	52.71

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for CVS Health and Revvity, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CVS Health	0	3	21	0	2.88
Revvity	2	10	4	0	2.12

CVS Health currently has a consensus price target of $105.38, indicating a potential downside of 1.85%. Revvity has a consensus price target of $108.92, indicating a potential downside of 1.13%. Given Revvity’s higher possible upside, analysts plainly believe Revvity is more favorable than CVS Health.

Risk and Volatility

CVS Health has a beta of 0.61, suggesting that its share price is 39% less volatile than the S&P 500. Comparatively, Revvity has a beta of 1.09, suggesting that its share price is 9% more volatile than the S&P 500.

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.

About Revvity

Revvity, Inc. provides health sciences solutions, technologies, and services in the Americas, Europe, and Asia, and internationally. The Life Sciences segment provides instruments, reagents, informatics, software, subscriptions, detection, imaging technologies, warranties, training, and services. Its Diagnostics segment provides instruments, reagents, assay platforms, and software products for the early detection of genetic disorders, such as pregnancy and early childhood, as well as infectious disease testing in the diagnostics market. Its products are used for testing and screening genetic abnormalities, disorders, and diseases, including down syndrome, hypothyroidism, muscular dystrophy, infertility, and various metabolic conditions. This segment also develops technologies that enable and support genomic workflows using protein coupled receptor and next-generation DNA sequencing for applications in oncology, immunodiagnostics, and drug discovery. It serves pharmaceutical and biotechnology companies, laboratories, academic and research institutions, public health authorities, private healthcare organizations, doctors, and government agencies under the AutoDELFIA, BACS-on-Beads, BIOCHIPs, Bioo Scientific,BoBs , chemagic, Chitas, DELFIA, DELFIA Xpress, DOPlify, EONIS, EUROArray, EUROIMMUN, EUROLabWorkstation, EUROLINE, EUROPattern, Evolution Evoya, explorer, Fontus, Genoglyphix, GSP, Haoyuan, IDS, IDS-i10 IDS-i10T, IDS-iSYS, iLab, iQ, JANUS, LabChip, LifeCycle, LimsLink, Migele, MultiPROBE, NEXTFLEX, NextPrep, Pannoramic, Panthera Puncher, PG-Seq, PGFind PKamp, PreNAT II, Prime, Protein Clear, ProteinEXact, QSigh, QuantiVac, RONIA, Sciclone, SimplicityChrom, Specimen Gate,Superflex, Symbio, T-SPOT, Touch, Twister, Vanadis, VariSpec, ViaCord VICTOR 2D, and Zephyr brand name. The company was formerly known as PerkinElmer, Inc. and changed its name to Revvity, Inc. in April 2023. Revvity, Inc. was founded in 1937 and is headquartered in Waltham, Massachusetts.