Centene Corp (CNC)vsMerck & Company Inc (MRK)
CNC
Centene Corp
$66.42
+1.56%
HEALTHCARE · Cap: $31.90B
MRK
Merck & Company Inc
$143.93
-0.54%
HEALTHCARE · Cap: $355.10B
Smart Verdict
WallStSmart Research — data-driven comparison
Centene Corp generates 171% more annual revenue ($180.30B vs $66.57B). MRK leads profitability with a 4.8% profit margin vs -2.8%. CNC appears more attractively valued with a PEG of 0.81. CNC earns a higher WallStSmart Score of 56/100 (C).
CNC
Buy56
out of 100
Grade: C
MRK
Hold36
out of 100
Grade: F
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
-73.7%
Fair Value
$82.84
Current Price
$143.93
$61.09 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
Generating 4.5B 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
Trading at 8.5x book value
ROE of 7.6% — below average capital efficiency
4.8% margin — thin
Elevated debt levels
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 : MRK
The strongest argument for MRK centers on Market Cap, Free Cash Flow.
Bear Case : CNC
The primary concerns for CNC are Revenue Growth, Operating Margin, Return on Equity.
Bear Case : MRK
The primary concerns for MRK are Price/Book, Return on Equity, Profit Margin. A P/E of 116.1x leaves little room for execution misses. Thin 4.8% margins leave little buffer for downturns.
Key Dynamics to Monitor
CNC profiles as a turnaround stock while MRK is a value play — different risk/reward profiles.
CNC carries more volatility with a beta of 1.11 — expect wider price swings.
MRK is growing revenue faster at 5.1% — sustainability is the question.
MRK generates stronger free cash flow (4.5B), providing more financial flexibility.
Bottom Line
CNC scores higher overall (56/100 vs 36/100). Both earn "Buy" and "Hold" 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.
Merck & Company Inc
HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA
Merck & Co. is an American multinational pharmaceutical company headquartered in Kenilworth, New Jersey. It is named after the Merck family, which set up Merck Group in Germany in 1668.
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