Centene Corp (CNC)vsInternational Business Machines (IBM)
CNC
Centene Corp
$55.33
+4.44%
HEALTHCARE · Cap: $26.34B
IBM
International Business Machines
$225.74
-1.44%
TECHNOLOGY · Cap: $218.24B
Smart Verdict
WallStSmart Research — data-driven comparison
Centene Corp generates 159% more annual revenue ($178.33B vs $68.91B). IBM leads profitability with a 15.6% profit margin vs -3.6%. CNC appears more attractively valued with a PEG of 1.02. IBM earns a higher WallStSmart Score of 60/100 (C).
CNC
Buy57
out of 100
Grade: C
IBM
Buy60
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for CNC.
Margin of Safety
-28.5%
Fair Value
$178.18
Current Price
$225.74
$47.56 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Generating 3.4B in free cash flow
Mega-cap, among the largest globally
Every $100 of equity generates 36 in profit
Generating 4.8B in free cash flow
Areas to Watch
ROE of -26.0% — below average capital efficiency
Currently unprofitable
Expensive relative to growth rate
Weak financial health signals
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : CNC
The strongest argument for CNC centers on Price/Book, Free Cash Flow. PEG of 1.02 suggests the stock is reasonably priced for its growth.
Bull Case : IBM
The strongest argument for IBM centers on Market Cap, Return on Equity, Free Cash Flow. Profitability is solid with margins at 15.6% and operating margin at 13.8%.
Bear Case : CNC
The primary concerns for CNC are Return on Equity, Profit Margin.
Bear Case : IBM
The primary concerns for IBM are PEG Ratio, Piotroski F-Score, Debt/Equity. Debt-to-equity of 2.06 is elevated, increasing financial risk.
Key Dynamics to Monitor
CNC profiles as a turnaround stock while IBM is a mature play — different risk/reward profiles.
IBM carries more volatility with a beta of 0.69 — expect wider price swings.
IBM is growing revenue faster at 9.5% — sustainability is the question.
IBM generates stronger free cash flow (4.8B), providing more financial flexibility.
Bottom Line
IBM scores higher overall (60/100 vs 57/100), backed by strong 15.6% margins. 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.
International Business Machines
TECHNOLOGY · INFORMATION TECHNOLOGY SERVICES · USA
International Business Machines Corporation (IBM) is an American multinational technology company headquartered in Armonk, New York, with operations in over 170 countries. The company began in 1911, founded in Endicott, New York, as the Computing-Tabulating-Recording Company (CTR) and was renamed International Business Machines in 1924. IBM is incorporated in New York. IBM produces and sells computer hardware, middleware and software, and provides hosting and consulting services in areas ranging from mainframe computers to nanotechnology. IBM is also a major research organization, holding the record for most annual U.S. patents generated by a business (as of 2020) for 28 consecutive years. Inventions by IBM include the automated teller machine (ATM), the floppy disk, the hard disk drive, the magnetic stripe card, the relational database, the SQL programming language, the UPC barcode, and dynamic random-access memory (DRAM). The IBM mainframe, exemplified by the System/360, was the dominant computing platform during the 1960s and 1970s.
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