Better Buy: Walgreens Boots Alliance vs. CVS Health
Instead of buying a health insurer outright, Walgreens began a tiny joint venture with one of the largest insurers in the U.S., Humana(NYSE: HUM), last summer. The partners started a pilot project in Kansas City to offer senior-focused health services at a handful of primary care clinics connected to Walgreens pharmacies. Unfortunately, sales from Walgreens' international pharmacy segment slipped 5.9% compared with the previous-year period. As the U.K.'s Brexit deadline approaches without any agreement, weak U.K. market conditions that have been pressuring the segment will probably continue or worsen in 2019. By becoming the company that pays the bills, CVS truly has a chance to turn its retail locations into community health hubs.