Centene Corp (CNC)vsCarMax Inc (KMX)
CNC
Centene Corp
$55.96
+1.78%
HEALTHCARE · Cap: $27.15B
KMX
CarMax Inc
$40.34
+1.08%
CONSUMER CYCLICAL · Cap: $5.66B
Smart Verdict
WallStSmart Research — data-driven comparison
Centene Corp generates 543% more annual revenue ($178.33B vs $27.76B). KMX leads profitability with a 0.9% profit margin vs -3.6%. KMX appears more attractively valued with a PEG of 0.38. CNC earns a higher WallStSmart Score of 57/100 (C).
CNC
Buy57
out of 100
Grade: C
KMX
Buy52
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for CNC.
Margin of Safety
+83.0%
Fair Value
$270.07
Current Price
$40.34
$229.73 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Generating 3.4B in free cash flow
Growing faster than its price suggests
Reasonable price relative to book value
Areas to Watch
ROE of -26.0% — below average capital efficiency
Currently unprofitable
Distress zone — elevated risk
ROE of 4.1% — below average capital efficiency
0.9% margin — thin
Operating margin of 1.8%
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 : KMX
The strongest argument for KMX centers on PEG Ratio, Price/Book. PEG of 0.38 suggests the stock is reasonably priced for its growth.
Bear Case : CNC
The primary concerns for CNC are Return on Equity, Profit Margin.
Bear Case : KMX
The primary concerns for KMX are Altman Z-Score, Return on Equity, Profit Margin. Debt-to-equity of 2.75 is elevated, increasing financial risk. Thin 0.9% margins leave little buffer for downturns.
Key Dynamics to Monitor
CNC profiles as a turnaround stock while KMX is a value play — different risk/reward profiles.
KMX carries more volatility with a beta of 1.18 — expect wider price swings.
CNC is growing revenue faster at 5.1% — 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). KMX offers better value entry with a 83.0% 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.
CarMax Inc
CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA
CarMax is a used vehicle retailer based in the United States. It operates two business segments: CarMax Sales Operations and CarMax Auto Finance.
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