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CVS vs. FMS: Which Healthcare Services Stock Has More Upside?
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Key Takeaways
CVS shares have surged 82.5% year to date, far outpacing FMS' 20.3% growth.
CVS benefits from rising earnings estimates and a lower forward P/S ratio of 0.25.
FMS targets 1.05B euro in sustainable savings and a mid-teens operating margin by 2030.
CVS Health (CVS - Free Report) and Fresenius Medical Care AG & Co. (FMS - Free Report) are two major players in the healthcare services sector, but with distinct areas of focus. CVS Health is a leading health solutions company offering a wide range of traditional, voluntary and consumer-directed health insurance products and related services. Through its integrated model, the company is also expanding into personalized, technology-driven care delivery and health offerings.
On the other hand, Fresenius Medical Care AG specializes in products and services for individuals with kidney diseases, providing dialysis treatments for approximately 300,000 patients worldwide. The company is also the leading provider of dialysis products, such as dialysis machines or dialyzers.
Here’s a brief look at how these companies are currently positioned.
The Case for CVS Health
CVS Health recently expanded its retail footprint with the completion of the acquisition of select Rite Aid assets. The CVS Pharmacy division added 63 former Rite Aid and Bartell Drugs stores in Idaho, Oregon and Washington and prescription files of 626 pharmacies across 15 states, increasing its patient base by more than nine million. In addition, CVS Specialty Pharmacy will serve as a key partner to the TrumpRx Fertility program, expected to launch in January 2026, to improve access to fertility treatments at the lowest possible cost.
Performance-wise, CVS Health benefits from the strength of its diversified businesses. The Pharmacy & Consumer Wellness segment remains a top performer, supported by strong execution across more than 9,000 retail locations and ongoing investments in technology and labor. CVS CostVantage, the company’s cost-based pricing framework, establishes reimbursement based on the actual drug cost, a defined markup and a dispensing fee, delivering transparency for payors while ensuring fair compensation for pharmacy services. In 2026, CVS plans to transition several government service programs to this model.
Within Health Services, patient growth at Oak Street and higher volumes at Signify Health drove a 19% revenue growth in the health care delivery business in the second quarter of 2025. CVS’ pharmacy benefit manager Caremark continues to promote competition, drive affordability and increase access for all patients, most recently in the GLP-1 drug category. Meanwhile, Aetna’s strong fundamentals were a highlight in the Centers for Medicare & Medicaid Services 2026 Star Ratings, with more than 81% of its Medicare Advantage members in 4-star plans and more than 63% members in a 4.5-star plan.
As of June 30, CVS Health reported $11.79 billion in cash and cash equivalents and sustained its regular quarterly dividend of $0.665 per share. The company continues to maintain a cautious view in light of the persistently elevated cost trends and the potential for macro headwinds.
The Case for Fresenius Medical Care
The company outlined its new FME Reignite strategy at its Capital Markets Day in June, aiming to lead kidney care through enhanced patient care and innovation. As part of this, Fresenius Medical invested EUR 312 million and closed a share purchase agreement with all non-physician investors in Interwell Health (IWH), its value-based care asset, and appointed a new leader for the operating segment.In the second quarter of 2025, Value-Based Care benefited from expanded contracting, leading to an increase in Member Months.
The company also began broader U.S. commercialization of the 5008X CARE system, a key milestone in its efforts to introduce high-volume hemodiafiltration (HVHDF) therapy to individuals with kidney disease. Fresenius Medical partnered with the Coordination of National Institutes of Health and Specialty Hospitals to develop a pilot program that provides low-income patients without medical coverage in Mexico with access to HVHDF therapies.
In addition, the company aims to continue capturing sustainable savings as part of FME25+, driven by disciplined execution of the next level of footprint optimization across both manufacturing and supply chain. The expanded program now targets a cumulative total of €1.05 billion of sustainable savings by the end of 2027, including an additional €300 million through operational efficiencies. The strategy supports the company’s aspirations for achieving industry-leading profitability levels, with a mid-teens % operating income margin by 2030.
Under the FME Reignite strategy, the new capital allocation framework puts a clear focus on shareholder value generation. The company plans to invest between EUR 800 million and 1 billion of capex annually for the 2025-2030 period to support sustainable, profitable growth in its core business. Also, the net financial leverage target band is lowered between 2.5X and 3.0X. Further, Fresenius Medical’s new dividend policy foresees a stable and predictable dividend development, resulting in a 30-40% payout ratio.
Meanwhile, the company remains exposed to the recent changes in global trade policy and other macroeconomic factors, potentially driving up its costs and expenses and affecting profitability.
CVS and FMS: Price Performance and Valuation
CVS shares have surged 82.5% year to date, well above Fresenius Medical Care’s 20.3% growth.
Image Source: Zacks Investment Research
Based on the forward price-to-sales (P/S) ratio, CVS shares are trading at 0.25, lower than their median of 0.28 over the past five years. FMS trades at a five-year P/S ratio of 0.67, above its median. CVS carries a Value Score of A, while FMS sits with a Value Score of B.
Image Source: Zacks Investment Research
EPS Projections for CVS & FMS
The Zacks Consensus Estimate for CVS Health’s 2025 EPS implies year-over-year growth of 17.3% to $6.36. Estimates have shown an upward trend in the last 90 days.
Image Source: Zacks Investment Research
Meanwhile, the consensus mark for Fresenius Medical Care’s 2025 EPS signals 30.7% year-over-year growth. Estimates have shown a mixed trend in the last 90 days.
Image Source: Zacks Investment Research
CVS or FMS: Which One to Pick?
CVS Health’s retail expansion, strength in divisions and solid financial base are promising for its long-term prospects. Fresenius has begun executing on its new strategy, with increased profitability aspirations and a new capital allocation framework to further enhance value creation. For 2025, both companies project year-over-year growth in earnings. However, CVS’ stronger share performance, consistent upward earnings revisions and cheaper valuation make it the stronger choice for now.
Image: Bigstock
CVS vs. FMS: Which Healthcare Services Stock Has More Upside?
Key Takeaways
CVS Health (CVS - Free Report) and Fresenius Medical Care AG & Co. (FMS - Free Report) are two major players in the healthcare services sector, but with distinct areas of focus. CVS Health is a leading health solutions company offering a wide range of traditional, voluntary and consumer-directed health insurance products and related services. Through its integrated model, the company is also expanding into personalized, technology-driven care delivery and health offerings.
On the other hand, Fresenius Medical Care AG specializes in products and services for individuals with kidney diseases, providing dialysis treatments for approximately 300,000 patients worldwide. The company is also the leading provider of dialysis products, such as dialysis machines or dialyzers.
Here’s a brief look at how these companies are currently positioned.
The Case for CVS Health
CVS Health recently expanded its retail footprint with the completion of the acquisition of select Rite Aid assets. The CVS Pharmacy division added 63 former Rite Aid and Bartell Drugs stores in Idaho, Oregon and Washington and prescription files of 626 pharmacies across 15 states, increasing its patient base by more than nine million. In addition, CVS Specialty Pharmacy will serve as a key partner to the TrumpRx Fertility program, expected to launch in January 2026, to improve access to fertility treatments at the lowest possible cost.
Performance-wise, CVS Health benefits from the strength of its diversified businesses. The Pharmacy & Consumer Wellness segment remains a top performer, supported by strong execution across more than 9,000 retail locations and ongoing investments in technology and labor. CVS CostVantage, the company’s cost-based pricing framework, establishes reimbursement based on the actual drug cost, a defined markup and a dispensing fee, delivering transparency for payors while ensuring fair compensation for pharmacy services. In 2026, CVS plans to transition several government service programs to this model.
Within Health Services, patient growth at Oak Street and higher volumes at Signify Health drove a 19% revenue growth in the health care delivery business in the second quarter of 2025. CVS’ pharmacy benefit manager Caremark continues to promote competition, drive affordability and increase access for all patients, most recently in the GLP-1 drug category. Meanwhile, Aetna’s strong fundamentals were a highlight in the Centers for Medicare & Medicaid Services 2026 Star Ratings, with more than 81% of its Medicare Advantage members in 4-star plans and more than 63% members in a 4.5-star plan.
As of June 30, CVS Health reported $11.79 billion in cash and cash equivalents and sustained its regular quarterly dividend of $0.665 per share. The company continues to maintain a cautious view in light of the persistently elevated cost trends and the potential for macro headwinds.
The Case for Fresenius Medical Care
The company outlined its new FME Reignite strategy at its Capital Markets Day in June, aiming to lead kidney care through enhanced patient care and innovation. As part of this, Fresenius Medical invested EUR 312 million and closed a share purchase agreement with all non-physician investors in Interwell Health (IWH), its value-based care asset, and appointed a new leader for the operating segment.In the second quarter of 2025, Value-Based Care benefited from expanded contracting, leading to an increase in Member Months.
The company also began broader U.S. commercialization of the 5008X CARE system, a key milestone in its efforts to introduce high-volume hemodiafiltration (HVHDF) therapy to individuals with kidney disease. Fresenius Medical partnered with the Coordination of National Institutes of Health and Specialty Hospitals to develop a pilot program that provides low-income patients without medical coverage in Mexico with access to HVHDF therapies.
In addition, the company aims to continue capturing sustainable savings as part of FME25+, driven by disciplined execution of the next level of footprint optimization across both manufacturing and supply chain. The expanded program now targets a cumulative total of €1.05 billion of sustainable savings by the end of 2027, including an additional €300 million through operational efficiencies. The strategy supports the company’s aspirations for achieving industry-leading profitability levels, with a mid-teens % operating income margin by 2030.
Under the FME Reignite strategy, the new capital allocation framework puts a clear focus on shareholder value generation. The company plans to invest between EUR 800 million and 1 billion of capex annually for the 2025-2030 period to support sustainable, profitable growth in its core business. Also, the net financial leverage target band is lowered between 2.5X and 3.0X. Further, Fresenius Medical’s new dividend policy foresees a stable and predictable dividend development, resulting in a 30-40% payout ratio.
Meanwhile, the company remains exposed to the recent changes in global trade policy and other macroeconomic factors, potentially driving up its costs and expenses and affecting profitability.
CVS and FMS: Price Performance and Valuation
CVS shares have surged 82.5% year to date, well above Fresenius Medical Care’s 20.3% growth.
Image Source: Zacks Investment Research
Based on the forward price-to-sales (P/S) ratio, CVS shares are trading at 0.25, lower than their median of 0.28 over the past five years. FMS trades at a five-year P/S ratio of 0.67, above its median. CVS carries a Value Score of A, while FMS sits with a Value Score of B.
Image Source: Zacks Investment Research
EPS Projections for CVS & FMS
The Zacks Consensus Estimate for CVS Health’s 2025 EPS implies year-over-year growth of 17.3% to $6.36. Estimates have shown an upward trend in the last 90 days.
Image Source: Zacks Investment Research
Meanwhile, the consensus mark for Fresenius Medical Care’s 2025 EPS signals 30.7% year-over-year growth. Estimates have shown a mixed trend in the last 90 days.
Image Source: Zacks Investment Research
CVS or FMS: Which One to Pick?
CVS Health’s retail expansion, strength in divisions and solid financial base are promising for its long-term prospects. Fresenius has begun executing on its new strategy, with increased profitability aspirations and a new capital allocation framework to further enhance value creation. For 2025, both companies project year-over-year growth in earnings. However, CVS’ stronger share performance, consistent upward earnings revisions and cheaper valuation make it the stronger choice for now.
CVS and FMS each carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.