Centene Corp (CNC)vsMcDonald’s Corporation (MCD)
CNC
Centene Corp
$62.33
-0.59%
HEALTHCARE · Cap: $32.19B
MCD
McDonald’s Corporation
$279.84
-1.84%
CONSUMER CYCLICAL · Cap: $203.29B
Smart Verdict
WallStSmart Research — data-driven comparison
Centene Corp generates 550% more annual revenue ($178.33B vs $27.45B). MCD leads profitability with a 31.6% 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
MCD
Buy56
out of 100
Grade: C
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 MCD.
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
Keeps 32 of every $100 in revenue as profit
Strong operational efficiency at 44.3%
Conservative balance sheet, low leverage
Generating 1.7B in free cash flow
Areas to Watch
ROE of -30.1% — below average capital efficiency
Currently unprofitable
ROE of 0.0% — below average capital efficiency
Weak financial health signals
Expensive relative to growth rate
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 : MCD
The strongest argument for MCD centers on Market Cap, Profit Margin, Operating Margin. Profitability is solid with margins at 31.6% and operating margin at 44.3%.
Bear Case : CNC
The primary concerns for CNC are Return on Equity, Profit Margin.
Bear Case : MCD
The primary concerns for MCD are Return on Equity, Piotroski F-Score, PEG Ratio.
Key Dynamics to Monitor
CNC profiles as a turnaround stock while MCD is a mature play — different risk/reward profiles.
CNC carries more volatility with a beta of 1.09 — expect wider price swings.
MCD is growing revenue faster at 9.4% — 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 56/100). 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.
McDonald’s Corporation
CONSUMER CYCLICAL · RESTAURANTS · USA
McDonald's Corporation is an American fast food company, founded in 1940 as a restaurant operated by Richard and Maurice McDonald, in San Bernardino, California, United States. They rechristened their business as a hamburger stand, and later turned the company into a franchise, with the Golden Arches logo being introduced in 1953 at a location in Phoenix, Arizona.
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