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ABT vs. CVS: A Head-to-Head Stock Comparison

Updated

Here’s a clear look at ABT and CVS, comparing key factors like performance, valuation metrics, dividends, and financial strength. It’s built for investors or anyone curious to see how these two stocks match up.

Company Overview

ABT dwarfs CVS in market cap, clocking in at 231.49 billion USD—about 2.95 times the 78.57 billion USD of its counterpart.

ABT at 0.74 and CVS at 0.60 move in sync when it comes to market volatility.

SymbolABTCVS
Company NameAbbott LaboratoriesCVS Health Corporation
CountryUSUS
SectorHealthcareHealthcare
IndustryMedical - DevicesMedical - Healthcare Plans
CEOMr. Robert B. FordMr. J. David Joyner CEBS
Price133.05 USD62.11 USD
Market Cap231.49 billion USD78.57 billion USD
Beta0.7430.6
ExchangeNYSENYSE
IPO DateMarch 17, 1980November 20, 1996
ADRNoNo

Performance Comparison

This chart compares the performance of ABT and CVS over the past year by tracking the growth of an initial $10,000 investment in each (starting one year ago).

Hover over the lines to see the investment’s value and total return (%) at specific dates.

Data is adjusted for dividends and splits.

Valuation Metrics Comparison

For a detailed comparison of valuation metrics between ABT and CVS, please refer to the table below.

SymbolABTCVS
Price-to-Earnings Ratio (P/E, TTM)17.2214.83
Forward PEG Ratio (TTM)1.731.27
Price-to-Sales Ratio (P/S, TTM)5.470.21
Price-to-Book Ratio (P/B, TTM)2.481.02
Price-to-Free Cash Flow Ratio (P/FCF, TTM)34.7713.23
EV-to-EBITDA (TTM)22.9710.98
EV-to-Sales (TTM)5.630.40
EV-to-Free Cash Flow (TTM)35.7825.20

Dividend Comparison

Both ABT at 1.71% and CVS at 4.28% pay dividends, blending income with growth in their strategies. Yet CVS’s 4.28% yield, 150% above ABT’s 1.71%, suggests a focus on generous payouts—possibly from stronger profits—while ABT leans toward reinvestment, perhaps due to tighter margins.

SymbolABTCVS
Dividend Yield (TTM)1.71%4.28%

Financial Strength Metrics Comparison

This section dives into the financial resilience of ABT and CVS, spotlighting key metrics like liquidity, leverage, and debt coverage. Check out the standout observations below where notable differences or extremes pop up.

  • CVS’s current ratio of 0.82 dips below 1, leaving short-term liabilities larger than current assets—a scenario that could hinge on cash flow support. On the other hand, ABT at 1.78 has enough assets to handle its obligations.
  • At 0.63, CVS’s quick ratio falls below 0.8, where liquid assets, minus inventory, can’t keep up with short-term bills—possibly riding on cash flow. By contrast, ABT hits 1.27, covering its bases comfortably.
SymbolABTCVS
Current Ratio (TTM)1.780.82
Quick Ratio (TTM)1.270.63
Debt-to-Equity Ratio (TTM)0.141.06
Debt-to-Assets Ratio (TTM)0.160.32
Interest Coverage Ratio (TTM)15.393.18