Centene Corp (CNC)vsHumana Inc (HUM)
CNC
Centene Corp
$62.33
-0.59%
HEALTHCARE · Cap: $32.19B
HUM
Humana Inc
$350.08
+0.08%
HEALTHCARE · Cap: $45.53B
Smart Verdict
WallStSmart Research — data-driven comparison
Centene Corp generates 30% more annual revenue ($178.33B vs $137.20B). HUM leads profitability with a 0.8% profit margin vs -3.6%. CNC appears more attractively valued with a PEG of 1.25. CNC earns a higher WallStSmart Score of 57/100 (C).
CNC
Buy57
out of 100
Grade: C
HUM
Buy52
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+85.0%
Fair Value
$269.76
Current Price
$62.33
$207.43 discount
Margin of Safety
+23.7%
Fair Value
$403.67
Current Price
$350.08
$53.59 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Generating 3.4B in free cash flow
Safe zone — low bankruptcy risk
Reasonable price relative to book value
Revenue surging 23.5% year-over-year
Generating 1.1B in free cash flow
Areas to Watch
ROE of -30.1% — below average capital efficiency
Currently unprofitable
Expensive relative to growth rate
ROE of 6.1% — below average capital efficiency
0.8% margin — thin
Operating margin of 4.7%
Comparative Analysis Report
WallStSmart ResearchBull Case : CNC
The strongest argument for CNC centers on Price/Book, Free Cash Flow. PEG of 1.25 suggests the stock is reasonably priced for its growth.
Bull Case : HUM
The strongest argument for HUM centers on Altman Z-Score, Price/Book, Revenue Growth. Revenue growth of 23.5% demonstrates continued momentum.
Bear Case : CNC
The primary concerns for CNC are Return on Equity, Profit Margin.
Bear Case : HUM
The primary concerns for HUM are PEG Ratio, Return on Equity, Profit Margin. A P/E of 40.5x leaves little room for execution misses. Thin 0.8% margins leave little buffer for downturns.
Key Dynamics to Monitor
CNC profiles as a turnaround stock while HUM is a growth play — different risk/reward profiles.
CNC carries more volatility with a beta of 1.09 — expect wider price swings.
HUM is growing revenue faster at 23.5% — sustainability is the question.
CNC generates stronger free cash flow (3.4B), providing more financial flexibility.
Bottom Line
CNC scores higher overall (57/100 vs 52/100). HUM offers better value entry with a 23.7% margin of safety. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Centene Corp
HEALTHCARE · HEALTHCARE PLANS · USA
Centene Corporation is a large publicly traded company and a multi-line managed care enterprise that serves as a major intermediary for both government-sponsored and privately insured health care programs. It is a healthcare insurer that focuses on managed care for uninsured, underinsured, and low-income individuals.
Humana Inc
HEALTHCARE · HEALTHCARE PLANS · USA
Humana Inc. is a for-profit American health insurance company based in Louisville, Kentucky.
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