Centene Corp (CNC)vsJohnson & Johnson (JNJ)
CNC
Centene Corp
$66.42
+1.56%
HEALTHCARE · Cap: $31.90B
JNJ
Johnson & Johnson
$265.58
-0.29%
HEALTHCARE · Cap: $640.02B
Smart Verdict
WallStSmart Research — data-driven comparison
Centene Corp generates 84% more annual revenue ($180.30B vs $97.93B). JNJ leads profitability with a 21.5% profit margin vs -2.8%. CNC appears more attractively valued with a PEG of 0.81. JNJ earns a higher WallStSmart Score of 59/100 (C).
CNC
Buy56
out of 100
Grade: C
JNJ
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+84.8%
Fair Value
$265.86
Current Price
$66.42
$199.44 discount
Margin of Safety
-88.9%
Fair Value
$140.57
Current Price
$265.58
$125.01 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Growing faster than its price suggests
Generating 4.2B in free cash flow
Mega-cap, among the largest globally
Every $100 of equity generates 25 in profit
Keeps 22 of every $100 in revenue as profit
Strong operational efficiency at 29.2%
Generating 3.4B in free cash flow
Areas to Watch
4.6% revenue growth
Operating margin of 3.8%
ROE of -22.6% — below average capital efficiency
Currently unprofitable
Premium valuation, high expectations priced in
Expensive relative to growth rate
Earnings declined 0.9%
Comparative Analysis Report
WallStSmart ResearchBull Case : CNC
The strongest argument for CNC centers on Price/Book, PEG Ratio, Free Cash Flow. PEG of 0.81 suggests the stock is reasonably priced for its growth.
Bull Case : JNJ
The strongest argument for JNJ centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 21.5% and operating margin at 29.2%.
Bear Case : CNC
The primary concerns for CNC are Revenue Growth, Operating Margin, Return on Equity.
Bear Case : JNJ
The primary concerns for JNJ are P/E Ratio, PEG Ratio, EPS Growth.
Key Dynamics to Monitor
CNC profiles as a turnaround stock while JNJ is a mature play — different risk/reward profiles.
CNC carries more volatility with a beta of 1.11 — expect wider price swings.
JNJ is growing revenue faster at 6.6% — sustainability is the question.
CNC generates stronger free cash flow (4.2B), providing more financial flexibility.
Bottom Line
JNJ scores higher overall (59/100 vs 56/100), backed by strong 21.5% margins. CNC offers better value entry with a 84.8% 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.
Johnson & Johnson
HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA
Johnson & Johnson (J&J) is an American multinational corporation founded in 1886 that develops medical devices, pharmaceuticals, and consumer packaged goods. Its common stock is a component of the Dow Jones Industrial Average and the company is ranked No. 36 on the 2021 Fortune 500 list of the largest United States corporations by total revenue. Johnson & Johnson is one of the world's most valuable companies, and is one of only two U.S.-based companies that has a prime credit rating of AAA, higher than that of the United States government.
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