Comparison
Walgreens vs CVS Stock: Pharmacy Comparison
Compare Walgreens and CVS stock, store counts, healthcare strategies, and which pharmacy company is the better investment.
Walgreens vs CVS Overview
Walgreens and CVS are America’s largest pharmacy chains, but have diverged strategically—CVS transformed into a healthcare company while Walgreens has focused more on its retail roots.
Company Comparison
| Metric |
Walgreens (WBA) |
CVS Health |
| Market Cap |
~$10B |
~$75B |
| Revenue (2025) |
~$140B |
~$360B |
| U.S. Stores |
~8,500 |
~9,000 |
| Founded |
1901 |
1963 |
| Dividend Yield |
~8% |
~4% |
Business Model Comparison
Walgreens
| Segment |
Revenue % |
| U.S. Retail Pharmacy |
~75% |
| International |
~20% |
| Healthcare (VillageMD) |
~5% |
CVS
| Segment |
Revenue % |
| Pharmacy & Consumer |
~30% |
| Health Services (Caremark PBM) |
~45% |
| Health Care (Aetna Insurance) |
~25% |
Financial Comparison
| Metric |
Walgreens |
CVS |
| Revenue |
~$140B |
~$360B |
| Gross Margin |
~20% |
~16% |
| Operating Margin |
~2% |
~4% |
| Net Margin |
~0.5% |
~2% |
| Debt |
~$35B |
~$65B |
CVS is significantly more profitable despite lower gross margins.
| Metric |
Walgreens |
CVS |
| U.S. Stores |
~8,500 |
~9,000 |
| Store Closures Planned |
Significant |
Moderate |
| International Presence |
Yes (Boots) |
Limited |
Both are closing underperforming stores as retail pharmacy faces pressure.
Healthcare Strategy
Walgreens
- VillageMD primary care clinics
- Shields Health specialty pharmacy
- CareCentrix home health
- Less vertically integrated
CVS
- Aetna health insurance (acquired 2018)
- Caremark PBM (pharmacy benefit manager)
- MinuteClinic retail health
- Oak Street Health primary care
- Signify Health home services
- Fully vertically integrated
Prescription Market Share
| Metric |
Walgreens |
CVS |
| Retail Rx Market Share |
~18% |
~25% |
| Specialty Pharmacy Share |
Growing |
#1 |
Challenges Facing Both
| Challenge |
Impact |
| Reimbursement pressure |
Squeezed pharmacy margins |
| Amazon competition |
Online pharmacy threat |
| Front-end retail decline |
Less foot traffic |
| Opioid litigation |
Legal costs |
| Labor costs |
Pharmacist shortages |
Valuation
| Metric |
Walgreens |
CVS |
| P/E Ratio |
N/A (losses) |
~10x |
| P/S Ratio |
~0.07x |
~0.2x |
| EV/EBITDA |
~6x |
~7x |
| Dividend Yield |
~8% |
~4% |
Walgreens trades at a significant discount but has execution challenges.
Dividend Sustainability
| Factor |
Walgreens |
CVS |
| Current Yield |
~8% |
~4% |
| Payout Ratio |
Unsustainable |
~35% |
| Cut Risk |
High |
Low |
Walgreens’ high yield reflects dividend cut concerns.
Which Stock to Buy?
| Preference |
Choose |
| Healthcare transformation |
CVS |
| Deep value/turnaround |
Walgreens |
| Dividend safety |
CVS |
| Higher (risky) yield |
Walgreens |
| Vertical integration |
CVS |
| International exposure |
Walgreens |
Most analysts prefer CVS for its diversified healthcare model and more sustainable position.
Stock data as of early 2026. This comparison is for informational purposes only and does not constitute investment advice.