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CVS is about 22% of all scripts filled.WAG is 15% or so of all scripts filled.At one point in Chicago, there weren't any CVS stores. WAG dominated this market, now however CVS has taken significant market share.You are correct in your assessments. RX Profit per script is probably in line with other pharmacies. WAG should get good purchasing deals with their market share. I can average 13/dollars a script pretty easy and if I shopped around I bet I can get it to 15.I think the question is why analysts prefer CVS and I have always felt that when you look at only these two companies, CVS has always positioned itself for growth.
Thanks for your input.Your logic makes sense but WAG increased its dividend that's confusing.
Increasing dividend makes the shares more attractive.The company could use the money internally to drive growth, moreover mature companies issue dividends.Good companies that give dividends, GE, OIL companies, etc.