WALGREENS nd CVS

Walgreensand CVS

Executive summary

This paper provides clues that will help to investigate the best buying into abilities of the businesses, i.e. Walgreens and CVS. Both CVS Corporation and Walgreen Company function retail pharmaceutical shops in the United States. In supplement to having pharmacies and trading prescription and non-prescription pharmaceuticals both retailers furthermore deal general merchandise. This encompasses pieces like attractiveness and cosmetic goods, convenience nourishment, house pieces and movie & photofinishing services. This investigation displays the outcomes of each company's operations, the ramification of those procedures on their economic declarations, and the deduction that because of their more cautious, less dodgy business form, Walgreens sustains a healthier procedure, regardless of identically outstanding development by both companies. Ultimately, the worth of each business is left for the investors to determine. The facts and numbers, although, displays that Walgreens is triumphant the profits rush for drugstore. The report presents a comprehensive insight into the business, encompassing enterprise structure and procedures, boss biographies and key competitors. Nobody concerns that Walgreen's is a large stock. The business has expanded its sales and profits for 31 directly years. But it deals at 27 times profits while CVS deals at just 18 times earnings. CVS has been effective to close the gap. Walgreen was a leading in most recent years as pharmacies amplified into everything from movie processing to supple beverages, and constructed ever-larger stand-alone locations. Walgreen has the most 24-hour and drive-through shops in the commerce, which the business states has been a peak differentiator between it and other chemists for time-strapped customers.

Table of content

Executive summaryii

Investment Option5

Background, contest and Stock selection of Walgreensand CVS5

Walgreens's Company history6

CVS/pharmacy9

Walgreensor CVS; Best investment option (a technical analysis)10

Financial analysis of Walgreensand CSV12

Stock of CVS and Walgreen18

Ten valuations of CVS20

Ten valuations of Walgreens21

Stock recommendation and technical analysis21

Conclusion25

Walgreens and CVS

Investment Option

An investor has numerous investment options to choose from, depending on risk profile and expectation of returns. Different investment options represent a different risk-reward trade off. Low risk investments are those that offer assured, but lower returns, while high risk investments provide the potential to earn greater returns. Hence, an investor's risk tolerance plays a key role in choosing the most suitable investment. All investment options have their inherent risk and benefits. For in tance, international investing is prone to social, political, economic and currency risks, while fixed income investing is prone to interest risks(Griffin,1999).

Background, contest and Stock selection of Walgreensand CVS

The 102-year-old Walgreen is a favorite on Wall Street because it has maintained the highest sales volume of any U.S. retail drugstores group in a tough economy. Yet its 2002 sales of $28.68 billion are not that much higher than the 40-year-old CVS' $24.1 billion. And ABN Amro retail analyst Timothy Kroll says the younger retailer, always on the lookout for new locations and smaller drug-store chains to acquire, could overtake Walgreen in sales if it makes the right expansion moves(Griffin,1999). Walgreen's stores tend to be larger than those of CVS, says ...