WallStSmart

Centene Corp (CNC)vsCVS Health Corp (CVS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

CVS Health Corp generates 127% more annual revenue ($399.83B vs $176.15B). CVS leads profitability with a 44.0% profit margin vs -3.8%. CVS appears more attractively valued with a PEG of 0.21. CVS earns a higher WallStSmart Score of 65/100 (C+).

CNC

Strong Buy

65

out of 100

Grade: B-

Growth: 8.0Profit: 4.0Value: 6.7Quality: 5.8
Piotroski: 4/9Altman Z: 2.71

CVS

Buy

65

out of 100

Grade: C+

Growth: 7.3Profit: 5.5Value: 4.7Quality: 6.5
Piotroski: 4/9Altman Z: 2.11
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for CNC.

CVSSignificantly Overvalued (-18.4%)

Margin of Safety

-18.4%

Fair Value

$65.05

Current Price

$71.48

$6.43 premium

UndervaluedFair: $65.05Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CNC4 strengths · Avg: 8.5/10
Price/BookValuation
0.8x10/10

Reasonable price relative to book value

PEG RatioValuation
0.778/10

Growing faster than its price suggests

Revenue GrowthGrowth
23.2%8/10

Revenue surging 23.2% year-over-year

EPS GrowthGrowth
21.8%8/10

Earnings expanding 21.8% YoY

CVS6 strengths · Avg: 9.5/10
PEG RatioValuation
0.2110/10

Growing faster than its price suggests

Price/BookValuation
1.2x10/10

Reasonable price relative to book value

Profit MarginProfitability
44.0%10/10

Keeps 44 of every $100 in revenue as profit

EPS GrowthGrowth
76.6%10/10

Earnings expanding 76.6% YoY

Market CapQuality
$90.94B9/10

Large-cap with strong market position

Free Cash FlowQuality
$2.61B8/10

Generating 2.6B in free cash flow

Areas to Watch

CNC3 concerns · Avg: 1.3/10
Return on EquityProfitability
-28.7%2/10

ROE of -28.7% — below average capital efficiency

Profit MarginProfitability
-3.8%1/10

Currently unprofitable

Operating MarginProfitability
-1.9%1/10

Operating margin of -1.9%

CVS4 concerns · Avg: 2.8/10
Return on EquityProfitability
2.3%3/10

ROE of 2.3% — below average capital efficiency

Operating MarginProfitability
1.6%3/10

Operating margin of 1.6%

Debt/EquityHealth
1.243/10

Elevated debt levels

P/E RatioValuation
51.4x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : CNC

The strongest argument for CNC centers on Price/Book, PEG Ratio, Revenue Growth. Revenue growth of 23.2% demonstrates continued momentum. PEG of 0.77 suggests the stock is reasonably priced for its growth.

Bull Case : CVS

The strongest argument for CVS centers on PEG Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 44.0% and operating margin at 1.6%. PEG of 0.21 suggests the stock is reasonably priced for its growth.

Bear Case : CNC

The primary concerns for CNC are Return on Equity, Profit Margin, Operating Margin.

Bear Case : CVS

The primary concerns for CVS are Return on Equity, Operating Margin, Debt/Equity. A P/E of 51.4x leaves little room for execution misses.

Key Dynamics to Monitor

CNC profiles as a growth stock while CVS is a mature play — different risk/reward profiles.

CVS carries more volatility with a beta of 0.46 — expect wider price swings.

CNC is growing revenue faster at 23.2% — sustainability is the question.

CVS generates stronger free cash flow (2.6B), providing more financial flexibility.

Bottom Line

CNC scores higher overall (65/100 vs 65/100) and 23.2% revenue growth. 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.

CVS Health Corp

HEALTHCARE · HEALTHCARE PLANS · USA

CVS Health (previously CVS Corporation and CVS Caremark Corporation) is an American healthcare company that owns CVS Pharmacy, a retail pharmacy chain; CVS Caremark, a pharmacy benefits manager; Aetna, a health insurance provider, among many other brands. The company's headquarters is in Woonsocket, Rhode Island.

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