Head to Head Analysis: Covetrus (CVET) versus Rite Aid (RAD)

Covetrus (NASDAQ:CVET) and Rite Aid (NYSE:RAD) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, earnings, analyst recommendations, valuation, dividends and institutional ownership.

Profitability

This table compares Covetrus and Rite Aid’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Covetrus N/A N/A N/A
Rite Aid -1.95% -1.21% -0.22%

Insider and Institutional Ownership

0.0% of Covetrus shares are owned by institutional investors. Comparatively, 45.8% of Rite Aid shares are owned by institutional investors. 2.6% of Rite Aid shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Covetrus and Rite Aid’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Covetrus $3.78 billion 0.97 $100.86 million N/A N/A
Rite Aid $21.64 billion 0.46 -$422.21 million N/A N/A

Covetrus has higher earnings, but lower revenue than Rite Aid.

Analyst Ratings

This is a summary of current recommendations and price targets for Covetrus and Rite Aid, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Covetrus 0 1 3 0 2.75
Rite Aid 2 4 0 0 1.67

Covetrus currently has a consensus target price of $40.00, suggesting a potential upside of 22.01%. Rite Aid has a consensus target price of $44.00, suggesting a potential upside of 374.93%. Given Rite Aid’s higher possible upside, analysts clearly believe Rite Aid is more favorable than Covetrus.

Summary

Covetrus beats Rite Aid on 7 of the 11 factors compared between the two stocks.

Covetrus Company Profile

Covetrus, Inc. engages in developing technologies and services for animal health industry. It also provides products, software, and services to help drive improved patient health, strong client relationships, and successful financial outcomes for veterinary professionals. The company was founded on April 13, 2018 and is headquartered in Melville, NY.

Rite Aid Company Profile

Rite Aid Corporation, through its subsidiaries, operates a chain of retail drugstores in the United States. It operates through two segments, Retail Pharmacy and Pharmacy Services. The Retail Pharmacy segment sells prescription drugs and a range of other merchandise, including over-the-counter medications, health and beauty aids, personal care items, cosmetics, household items, food and beverages, greeting cards, seasonal merchandise, and other every day and convenience products. It also operates retail clinics that provide treatment for common conditions; and a range of preventive services comprising screenings, medical tests, immunizations, and basic physical exams. In addition, this segment offers healthcare coaching and disease management services. The Pharmacy Services segment provides pharmacy benefit management (PBM) services and a range of pharmacy-related services. This segment also performs prescription adjudication services for other PBMs; and offers integrated mail-order, specialty and compounding pharmacy, and infertility treatment services, as well as drug benefits under the federal government's Medicare Part D program. As of April 12, 2018, the company operated approximately 2,548 stores in 19 states. Rite Aid Corporation was founded in 1927 and is headquartered in Camp Hill, Pennsylvania.

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