Analyzing CVS Health (NYSE:CVS) and Establishment Labs (NASDAQ:ESTA)

Establishment Labs (NASDAQ:ESTA) and CVS Health (NYSE:CVS) are both medical companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, valuation, risk, profitability, analyst recommendations, earnings and institutional ownership.

Institutional & Insider Ownership

72.9% of Establishment Labs shares are held by institutional investors. Comparatively, 80.7% of CVS Health shares are held by institutional investors. 11.1% of Establishment Labs shares are held by company insiders. Comparatively, 1.2% of CVS Health shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Establishment Labs	-49.89%	-224.34%	-25.53%
CVS Health	1.17%	10.51%	3.15%

Volatility & Risk

Establishment Labs has a beta of 0.85, suggesting that its stock price is 15% less volatile than the S&P 500. Comparatively, CVS Health has a beta of 0.62, suggesting that its stock price is 38% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Establishment Labs and CVS Health, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Establishment Labs	0	1	5	0	2.83
CVS Health	0	3	19	2	2.96

Establishment Labs currently has a consensus price target of $56.50, indicating a potential upside of 44.46%. CVS Health has a consensus price target of $78.25, indicating a potential upside of 3.23%. Given Establishment Labs’ higher possible upside, equities research analysts plainly believe Establishment Labs is more favorable than CVS Health.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Establishment Labs	$166.02 million	6.82	-$84.60 million	($3.05)	-12.82
CVS Health	$372.81 billion	0.26	$4.61 billion	$3.58	21.17

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

Summary

CVS Health beats Establishment Labs on 11 of the 15 factors compared between the two stocks.

About Establishment Labs

Establishment Labs Holdings Inc., a medical technology company, manufactures and markets medical devices for aesthetic and reconstructive plastic surgery. The company primarily offers silicone gel-filled breast implants under the Motiva Implants brand. It also provides Motiva Ergonomix and Motiva Ergonomix2 gravity sensitive round soft silicone-gel-filled breast implants; and Motiva Flora Tissue Expander, a breast tissue expander. The company sells its products to physicians, hospitals, and clinics through distributors and direct sales force in Europe, the Middle East, Latin America, and Asia. Establishment Labs Holdings Inc. was incorporated in 2004 and is headquartered in Alajuela, Costa Rica.

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.