Centene Corp (CNC)vsLumentum Holdings Inc (LITE)
CNC
Centene Corp
$62.33
-0.59%
HEALTHCARE · Cap: $32.19B
LITE
Lumentum Holdings Inc
$945.08
-2.30%
TECHNOLOGY · Cap: $74.47B
Smart Verdict
WallStSmart Research — data-driven comparison
Centene Corp generates 7067% more annual revenue ($178.33B vs $2.49B). LITE leads profitability with a 17.7% profit margin vs -3.6%. LITE appears more attractively valued with a PEG of 0.63. LITE earns a higher WallStSmart Score of 74/100 (B).
CNC
Buy57
out of 100
Grade: C
LITE
Strong Buy74
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+85.0%
Fair Value
$268.78
Current Price
$62.33
$206.45 discount
Intrinsic value data unavailable for LITE.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Generating 3.4B in free cash flow
Revenue surging 90.1% year-over-year
Earnings expanding 71.1% YoY
Large-cap with strong market position
Growing faster than its price suggests
Strong operational efficiency at 21.8%
Areas to Watch
ROE of -30.1% — below average capital efficiency
Currently unprofitable
Elevated debt levels
Premium valuation, high expectations priced in
Trading at 79.7x book value
Distress zone — elevated risk
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 : LITE
The strongest argument for LITE centers on Revenue Growth, EPS Growth, Market Cap. Profitability is solid with margins at 17.7% and operating margin at 21.8%. Revenue growth of 90.1% demonstrates continued momentum.
Bear Case : CNC
The primary concerns for CNC are Return on Equity, Profit Margin.
Bear Case : LITE
The primary concerns for LITE are Debt/Equity, P/E Ratio, Price/Book. A P/E of 169.4x leaves little room for execution misses.
Key Dynamics to Monitor
CNC profiles as a turnaround stock while LITE is a growth play — different risk/reward profiles.
LITE carries more volatility with a beta of 1.48 — expect wider price swings.
LITE is growing revenue faster at 90.1% — sustainability is the question.
CNC generates stronger free cash flow (3.4B), providing more financial flexibility.
Bottom Line
LITE scores higher overall (74/100 vs 57/100), backed by strong 17.7% margins and 90.1% revenue growth. CNC offers better value entry with a 85.0% margin of safety. Both earn "Strong 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.
Lumentum Holdings Inc
TECHNOLOGY · COMMUNICATION EQUIPMENT · USA
Lumentum Holdings Inc. manufactures and sells optical and photonic products in the Americas, Asia-Pacific, Europe, the Middle East, and Africa. The company is headquartered in San Jose, California.
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