Centene Corp (CNC)vsUnitedHealth Group Incorporated (UNH)
CNC
Centene Corp
$67.05
-2.42%
HEALTHCARE · Cap: $34.16B
UNH
UnitedHealth Group Incorporated
$410.39
-0.80%
HEALTHCARE · Cap: $360.32B
Smart Verdict
WallStSmart Research — data-driven comparison
UnitedHealth Group Incorporated generates 150% more annual revenue ($450.06B vs $180.30B). UNH leads profitability with a 3.5% profit margin vs -2.8%. CNC appears more attractively valued with a PEG of 0.75. UNH earns a higher WallStSmart Score of 62/100 (C+).
CNC
Buy56
out of 100
Grade: C
UNH
Buy62
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+84.6%
Fair Value
$262.17
Current Price
$67.05
$195.12 discount
Margin of Safety
-25.9%
Fair Value
$326.16
Current Price
$410.39
$84.23 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
Earnings expanding 75.9% YoY
Generating 4.3B 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
Moderate valuation
3.5% margin — thin
Revenue declined 0.4%
Comparative Analysis Report
WallStSmart ResearchBull Case : CNC
The strongest argument for CNC centers on Price/Book, PEG Ratio, Free Cash Flow. PEG of 0.75 suggests the stock is reasonably priced for its growth.
Bull Case : UNH
The strongest argument for UNH centers on Market Cap, EPS Growth, Free Cash Flow. PEG of 1.01 suggests the stock is reasonably priced for its growth.
Bear Case : CNC
The primary concerns for CNC are Revenue Growth, Operating Margin, Return on Equity.
Bear Case : UNH
The primary concerns for UNH are P/E Ratio, Profit Margin, Revenue Growth. Thin 3.5% margins leave little buffer for downturns.
Key Dynamics to Monitor
CNC profiles as a turnaround stock while UNH is a value play — different risk/reward profiles.
CNC carries more volatility with a beta of 1.13 — expect wider price swings.
CNC is growing revenue faster at 4.6% — sustainability is the question.
UNH generates stronger free cash flow (4.3B), providing more financial flexibility.
Bottom Line
UNH scores higher overall (62/100 vs 56/100). CNC offers better value entry with a 84.6% 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.
UnitedHealth Group Incorporated
HEALTHCARE · HEALTHCARE PLANS · USA
UnitedHealth Group Incorporated is an American for-profit multinational managed healthcare and insurance company based in Minnetonka, Minnesota. It offers health care products and insurance services. In 2020, it was the second-largest healthcare company (behind CVS Health) by revenue with $257.1 billion, and the largest insurance company by net premiums. UnitedHealthcare revenues comprise 80% of the Group's overall revenue.
Visit Website →Compare with Other HEALTHCARE PLANS Stocks
Want to dig deeper into these stocks?