Home > Comparison > Healthcare > CVS vs MOH
The competitive dynamic between CVS Health Corporation and Molina Healthcare, Inc. shapes the evolution of the healthcare plans industry. CVS operates as a diversified healthcare giant, integrating retail pharmacies and benefit management. Molina focuses on managed care for low-income and government-sponsored populations, emphasizing Medicaid and Medicare services. This analysis explores which model delivers superior risk-adjusted returns, guiding portfolio decisions amid sector complexities and regulatory pressures.
Table of contents
Companies Overview
CVS Health Corporation and Molina Healthcare, Inc. are pivotal players in the U.S. healthcare plans market.
CVS Health Corporation: Integrated Health Services Leader
CVS dominates as a diversified healthcare provider with a robust pharmacy services and retail footprint. Its core revenue stems from pharmacy benefit management, retail pharmacy sales, and healthcare benefits. In 2021, CVS strategically focused on expanding its MinuteClinic walk-in medical clinics and enhancing integrated health services to deepen consumer engagement.
Molina Healthcare, Inc.: Medicaid and Medicare Specialist
Molina Healthcare specializes in managed care for low-income populations, primarily through Medicaid and Medicare programs. Its revenue engine relies on government-sponsored healthcare plan enrollments across 18 states. In 2021, Molina concentrated on scaling membership and refining care delivery within public health insurance marketplaces to strengthen its presence in underserved markets.
Strategic Collision: Similarities & Divergences
Both companies compete within the healthcare plans sector but diverge in approach: CVS pursues an integrated, multi-segment model combining retail and clinical services, while Molina targets government-funded insurance with a focus on Medicaid and Medicare. Their battleground centers on capturing healthcare plan memberships. CVS offers broad market exposure; Molina presents a niche play with public program reliance, marking distinct investment risk profiles.
Income Statement Comparison
The following data dissects the core profitability and scalability of both corporate engines to reveal who dominates the bottom line:
| Metric | CVS Health Corporation (CVS) | Molina Healthcare, Inc. (MOH) |
|---|---|---|
| Revenue | 402B | 45B |
| Cost of Revenue | 347B | 41B |
| Operating Expenses | 45B | 3.8B |
| Gross Profit | 55B | 4.6B |
| EBITDA | 9.9B | 1B |
| EBIT | 5.3B | 783M |
| Interest Expense | 3.1B | 194M |
| Net Income | 1.8B | 472M |
| EPS | 1.4 | 8.93 |
| Fiscal Year | 2025 | 2025 |
Income Statement Analysis: The Bottom-Line Duel
This income statement comparison reveals which company drives profitability and operational efficiency through its core financial engine.
CVS Health Corporation Analysis
CVS grew revenue steadily from 292B in 2021 to 402B in 2025. However, net income plunged from 8.0B in 2021 to 1.8B in 2025, signaling deteriorating profitability. Gross margin held steady near 13.8%, but net margin contracted sharply to 0.44% in 2025, indicating rising costs and margin pressure undermining overall efficiency.
Molina Healthcare, Inc. Analysis
Molina’s revenue expanded robustly from 27.8B in 2021 to 45.4B in 2025. Net income fell from 659M in 2021 to 472M in 2025, reflecting margin compression despite top-line growth. Gross margin hovered around 10%, with net margin at 1.04% in 2025. Declining EBIT and EPS growth highlight challenges in cost control and capital allocation.
Margin Pressure vs. Revenue Growth
Both CVS and Molina face worsening bottom-line profits despite revenue gains, but CVS’s sharp net income decline contrasts with Molina’s less severe drop. CVS’s higher gross margin is offset by steep net margin erosion. Molina offers steadier margins but lower scale. For investors, CVS reflects scale with margin risk; Molina shows growth tempered by profitability challenges.
Financial Ratios Comparison
These vital ratios act as a diagnostic tool to expose the underlying fiscal health, valuation premiums, and capital efficiency of the companies analyzed:
| Ratios | CVS Health Corporation (CVS) | Molina Healthcare, Inc. (MOH) |
|---|---|---|
| ROE | 2.35% | 11.60% |
| ROIC | 4.92% | 7.66% |
| P/E | 56.87 | 18.68 |
| P/B | 1.34 | 2.17 |
| Current Ratio | 0.84 | 1.69 |
| Quick Ratio | 0.63 | 1.69 |
| D/E | 1.06 | 0.97 |
| Debt-to-Assets | 31.5% | 25.4% |
| Interest Coverage | 3.33 | 4.04 |
| Asset Turnover | 1.59 | 2.92 |
| Fixed Asset Turnover | 14.33 | 150.92 |
| Payout ratio | 192% | 0% |
| Dividend yield | 3.38% | 0% |
| Fiscal Year | 2025 | 2025 |
Efficiency & Valuation Duel: The Vital Signs
Financial ratios serve as a company’s DNA, uncovering hidden risks and revealing operational excellence that raw numbers often mask.
CVS Health Corporation
CVS displays weak profitability with a 2.35% ROE and a net margin of 0.44%, indicating low operational efficiency. Its valuation is stretched, reflected in a high P/E of 56.87, signaling expensive stock pricing. However, CVS supports shareholders through a solid 3.38% dividend yield, balancing slow growth with income returns.
Molina Healthcare, Inc.
Molina delivers stronger profitability, with an 11.6% ROE and a 1.04% net margin, showing moderate efficiency. Its valuation is more reasonable, with a P/E of 18.68, implying fair market pricing. Molina does not pay dividends but reinvests aggressively into growth, evident from stable capital turnover and favorable liquidity ratios.
Valuation Stretch vs. Operational Strength
Molina Healthcare offers a healthier balance of profitability and valuation compared to CVS’s stretched multiples and weak returns. Investors seeking growth and operational efficiency may favor Molina’s profile, while income-focused investors might consider CVS for its dependable dividend yield.
Which one offers the Superior Shareholder Reward?
I compare CVS Health Corporation and Molina Healthcare, Inc. on dividends, buybacks, and sustainability of shareholder returns. CVS pays a 3.38% dividend yield with a payout ratio near 192%, signaling aggressive distribution but questionable sustainability. CVS supports dividends with solid free cash flow of 6.16/share and a buyback program enhancing total returns. Molina Healthcare pays no dividend, focusing capital on growth and acquisitions, reflected in negative free cash flow and strong reinvestment in operations. Molina’s lack of dividends is offset by higher asset turnover (2.92 vs. CVS’s 1.59) and superior operating margins recently, but its buyback activity is minimal. I see CVS’s balanced approach of dividends plus buybacks as superior in 2026, offering more reliable total shareholder reward despite some payout risk. Molina’s all-growth strategy suits risk-tolerant investors but lacks immediate shareholder returns.
Comparative Score Analysis: The Strategic Profile
The radar chart reveals the fundamental DNA and trade-offs of CVS Health Corporation and Molina Healthcare, Inc., highlighting their distinct financial strengths and valuation nuances:
Both companies share a robust Discounted Cash Flow (DCF) score of 5, indicating strong future cash flow projections. Molina edges out CVS in Return on Equity (4 vs. 3) suggesting greater efficiency in generating shareholder returns. Both have moderate Return on Assets at 3, but each suffers a weak Debt-to-Equity score of 1, signaling high financial leverage risk. Valuation metrics diverge: CVS scores poorly on Price-to-Earnings (1) but fares better on Price-to-Book (4), while Molina holds moderate valuations in both (3 each). Overall, Molina presents a more balanced profile, while CVS relies heavily on its discounted cash flow and book value advantage.
Bankruptcy Risk: Solvency Showdown
CVS’s Altman Z-Score of 2.25 places it in the grey zone, signaling moderate bankruptcy risk. Molina’s 4.14 firmly situates it in the safe zone, indicating stronger solvency and resilience in this cycle:
Financial Health: Quality of Operations
Both firms score a Piotroski F-Score of 6, reflecting average financial health. Neither shows acute red flags, but neither stands out as exceptionally strong:
How are the two companies positioned?
This section dissects the operational DNA of CVS and MOH by comparing their revenue distribution and internal strengths and weaknesses. The final goal is to confront their economic moats to identify which model offers the most resilient competitive advantage today.
Revenue Segmentation: The Strategic Mix
This visual comparison dissects how CVS Health Corporation and Molina Healthcare, Inc. diversify their income streams and highlights their primary sector bets:
CVS anchors its revenue in Pharmacy ($229B) and Premiums ($135B), showing a broad ecosystem spanning retail and insurance. Molina Healthcare pivots heavily on Medicaid Solutions ($32B), with smaller contributions from Medicare ($6.2B) and Marketplace ($4.5B). CVS’s diversified mix reduces concentration risk and leverages infrastructure dominance. Molina’s reliance on Medicaid exposes it to policy changes but offers strong niche specialization.
Strengths and Weaknesses Comparison
This table compares the strengths and weaknesses of CVS Health Corporation and Molina Healthcare, Inc.:
CVS Strengths
- Large diversified revenue with strong pharmacy and premiums segments
- Favorable asset and fixed asset turnover ratios
- Attractive dividend yield supports income investors
MOH Strengths
- Favorable liquidity ratios with current and quick ratios at 1.69
- Strong asset turnover metrics including fixed asset turnover at 150.92
- Neutral to favorable profitability measures with ROE and ROIC above WACC
CVS Weaknesses
- Unfavorable net margin, ROE, and ROIC indicating weak profitability
- Low current and quick ratios signal liquidity risks
- High debt-to-equity and poor interest coverage ratios
MOH Weaknesses
- Unfavorable net margin and zero dividend yield can deter income-focused investors
- P/E and P/B ratios are neutral, offering limited valuation appeal
- Interest coverage is only neutral, implying moderate debt service capacity
CVS exhibits scale and operational efficiency but struggles with profitability and liquidity metrics. Molina shows stronger liquidity and more favorable returns relative to its cost of capital but lacks dividend income and has moderate profitability challenges. These contrasts highlight differing financial health and strategic focuses.
The Moat Duel: Analyzing Competitive Defensibility
A structural moat is the only reliable shield preserving long-term profits from relentless competitive erosion. Let’s examine how CVS and Molina Healthcare defend their turf:
CVS Health Corporation: Integrated Healthcare Ecosystem
CVS’s moat lies in its integrated healthcare services combining pharmacy, retail, and insurance benefits. This synergy delivers stable margins but shows declining ROIC, signaling weakening economic profit in 2026.
Molina Healthcare, Inc.: Focused Medicaid Expertise
Molina’s moat stems from targeted Medicaid and Medicare managed care, offering a niche cost advantage. Despite higher ROIC than CVS, its profitability contracts amid market pressures, challenging future moat sustainability.
Integrated Scale vs. Niche Focus: The Moat Showdown
Molina holds the deeper moat with ROIC comfortably above WACC, reflecting efficient capital use. CVS’s broader ecosystem faces margin compression and value erosion. Molina is better positioned to defend and grow its specialized market share.
Which stock offers better returns?
Over the past year, CVS Health Corporation’s stock price remained essentially flat, while Molina Healthcare, Inc. experienced a significant decline with accelerated bearish momentum.
Trend Comparison
CVS’s stock price showed a 0.0% change over the last 12 months, indicating a neutral trend with deceleration in price movement and volatility measured by a 9.43 standard deviation.
Molina Healthcare’s stock fell sharply by 67.36% over the same period, marking a clear bearish trend with accelerating downward momentum and a high volatility of 74.98 standard deviation.
Comparing both, CVS delivered stable market performance, whereas Molina Healthcare suffered substantial losses, making CVS the stronger performer by a wide margin.
Target Prices
Analysts show a bullish consensus with notable upside potential for both CVS Health Corporation and Molina Healthcare, Inc.
| Company | Target Low | Target High | Consensus |
|---|---|---|---|
| CVS Health Corporation | 90 | 103 | 94.92 |
| Molina Healthcare, Inc. | 109 | 224 | 163.64 |
The target consensus for CVS suggests a moderate 21% upside from the current 78.48 price. Molina’s consensus implies a substantial 21% to 65% upside, reflecting higher growth expectations.
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How do institutions grade them?
CVS Health Corporation Grades
The following table summarizes recent grades from major financial institutions for CVS Health Corporation:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Argus Research | Maintain | Buy | 2026-01-28 |
| B of A Securities | Maintain | Buy | 2026-01-27 |
| JP Morgan | Maintain | Overweight | 2025-12-17 |
| Bernstein | Maintain | Market Perform | 2025-12-12 |
| Baird | Maintain | Outperform | 2025-12-10 |
| Mizuho | Maintain | Outperform | 2025-12-10 |
| Truist Securities | Maintain | Buy | 2025-12-10 |
| UBS | Maintain | Buy | 2025-12-10 |
| Barclays | Maintain | Overweight | 2025-12-10 |
| Piper Sandler | Maintain | Overweight | 2025-12-10 |
Molina Healthcare, Inc. Grades
Below are recent grades from recognized financial institutions for Molina Healthcare, Inc.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Goldman Sachs | Maintain | Neutral | 2026-02-12 |
| Barclays | Maintain | Underweight | 2026-02-10 |
| TD Cowen | Maintain | Hold | 2026-02-09 |
| Cantor Fitzgerald | Maintain | Neutral | 2026-02-09 |
| Wells Fargo | Maintain | Overweight | 2026-01-07 |
| Barclays | Maintain | Underweight | 2026-01-05 |
| Wells Fargo | Maintain | Overweight | 2025-11-12 |
| Barclays | Downgrade | Underweight | 2025-10-24 |
| Goldman Sachs | Maintain | Neutral | 2025-10-24 |
| Cantor Fitzgerald | Maintain | Neutral | 2025-10-24 |
Which company has the best grades?
CVS Health Corporation consistently earns higher grades, including multiple “Buy” and “Outperform” ratings. Molina Healthcare’s grades cluster around “Neutral” and “Underweight.” This suggests CVS is more favorably viewed by analysts, potentially indicating stronger market confidence.
Risks specific to each company
The following categories identify the critical pressure points and systemic threats facing both firms in the 2026 market environment:
1. Market & Competition
CVS Health Corporation
- Operates a vast retail and pharmacy network, facing intense competition from integrated healthcare and retail giants.
Molina Healthcare, Inc.
- Focuses on Medicaid and Medicare managed care with competition from regional and national insurers expanding government program coverage.
2. Capital Structure & Debt
CVS Health Corporation
- Debt-to-equity ratio stands at 1.06, signaling aggressive leverage and financial risk. Interest coverage is weak at 1.68x, raising solvency concerns.
Molina Healthcare, Inc.
- Debt-to-equity ratio near 0.97 reflects moderate leverage. Interest coverage at 4.04x suggests healthier debt servicing capability.
3. Stock Volatility
CVS Health Corporation
- Beta of 0.50 indicates lower volatility and defensive stock behavior in market swings.
Molina Healthcare, Inc.
- Beta of 0.49 reflects similarly low volatility, offering some downside protection amid market uncertainty.
4. Regulatory & Legal
CVS Health Corporation
- Faces complex regulatory scrutiny across multiple healthcare and pharmacy domains, increasing compliance costs.
Molina Healthcare, Inc.
- Highly sensitive to Medicaid and Medicare policy shifts, regulatory changes could significantly impact revenues.
5. Supply Chain & Operations
CVS Health Corporation
- Extensive retail and distribution network exposed to supply chain disruptions and rising operational costs.
Molina Healthcare, Inc.
- Operational focus on managed care limits supply chain risks but depends heavily on government program stability.
6. ESG & Climate Transition
CVS Health Corporation
- Large footprint requires significant ESG initiatives; social responsibility and governance practices under investor scrutiny.
Molina Healthcare, Inc.
- Smaller scale reduces direct ESG risks; however, social impact and governance remain important for reputation and compliance.
7. Geopolitical Exposure
CVS Health Corporation
- Primarily US-based with limited international exposure, minimizing geopolitical risk but fully exposed to US policy changes.
Molina Healthcare, Inc.
- Concentrated US Medicaid and Medicare exposure also limits geopolitical threats but heightens vulnerability to domestic policy shifts.
Which company shows a better risk-adjusted profile?
Molina Healthcare’s dominant risk is regulatory dependence on government healthcare programs, while CVS faces significant financial leverage and operational complexity risks. Molina’s stronger liquidity and safer Altman Z-Score place it ahead on risk-adjusted grounds. CVS’s aggressive debt and weak interest coverage pose red flags despite scale advantages. The stark difference in debt servicing capacity justifies my concern for CVS’s financial stability.
Final Verdict: Which stock to choose?
CVS Health Corporation’s superpower lies in its vast scale and operational reach, driving solid asset turnover that supports steady cash flow. However, its declining profitability and stretched liquidity ratios pose a point of vigilance. CVS might suit investors aiming for a defensive, income-focused portfolio with moderate growth expectations.
Molina Healthcare, Inc. commands a strategic moat through its focused Medicaid managed care, which offers recurring revenue stability and superior returns on invested capital versus its cost of capital. Its stronger liquidity and safer balance sheet make it a comparatively less risky choice. Molina could fit well within a GARP (Growth at a Reasonable Price) portfolio seeking efficiency and value.
If you prioritize scale and consistent cash generation, CVS stands out due to its entrenched market position despite profitability pressures. However, if you seek better capital efficiency and safer liquidity, Molina offers superior stability and value creation, albeit with more recent volatility. Each stock appeals to distinct investor profiles depending on risk tolerance and growth ambitions.
Disclaimer: Investment carries a risk of loss of initial capital. The past performance is not a reliable indicator of future results. Be sure to understand risks before making an investment decision.
Go Further
I encourage you to read the complete analyses of CVS Health Corporation and Molina Healthcare, Inc. to enhance your investment decisions:
