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.
Store Footprint
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.