Thursday, May 20, 2010

What is a better stock: CVS or Walgreens?

This is a game. Looking to put about 10000 of one of these stocks

What is a better stock: CVS or Walgreens?
I think you should be asking yourself more questions such as: when is your investment horizon? Next Month, One year, or 3-5+yrs? Because I think one is better than the other depending on certain time frame. Next, what are you most concerned about between these two, because if you look at each other's return and graph they look almost identical. And lastly, what do you like or know about this industry?





My Quick thoughts:


*Walgreen's financial compared to CVS appear to be slightly better with higher gross margins- maybe its due to their product lines/luxurious item, but aren't necessarily operating cost more efficiently (paying to high of salary or fixed costs exp). ROA and ROI is much higher for Walgreen, but what are they doing with their cash because free cash flow appear significantly less to CVS, but this could be to due to their growth from Capital Expenditure Exp.. Foward Price to Earnings (PE) slightly better. But both of these stocks are tough bets.





Walgreen has less market value, which could mean they have more to grow/gain, but need to watch fixed costs more closely as they grow.





Overall, I would slightly pick Walgreen over CVS if you looking for growing company. The beta is higher on CVS, which I don't know why because Walgreens I would think would be riskier to due growing pains. But you should ask yourself is this industry you want to be in and can make the most $$$$$$? People need to validate their reasons why they are picking Walgreens or CVS and hopefully this helps you.
Reply:Walgreen's they could use the money in are neighborhood to reface the old buildings that are nearly fifty years old.
Reply:Investopedia?





Well, anyway...Look for a better company.





I guess Walgreens
Reply:Walgreen's is in a better position to buy than the CVS stock is currently.
Reply:Id go with walgreens =)

Kung Fu school

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