Centene Corp (CNC)vsGilead Sciences Inc (GILD)
CNC
Centene Corp
$62.33
-0.59%
HEALTHCARE · Cap: $32.19B
GILD
Gilead Sciences Inc
$129.16
-1.35%
HEALTHCARE · Cap: $154.33B
Smart Verdict
WallStSmart Research — data-driven comparison
Centene Corp generates 500% more annual revenue ($178.33B vs $29.74B). GILD leads profitability with a 31.0% profit margin vs -3.6%. CNC appears more attractively valued with a PEG of 1.25. GILD earns a higher WallStSmart Score of 68/100 (B-).
CNC
Buy57
out of 100
Grade: C
GILD
Strong Buy68
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
Margin of Safety
+43.9%
Fair Value
$220.62
Current Price
$129.16
$91.46 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Generating 3.4B in free cash flow
Every $100 of equity generates 39 in profit
Keeps 31 of every $100 in revenue as profit
Strong operational efficiency at 39.3%
Earnings expanding 54.8% YoY
Large-cap with strong market position
Attractively priced relative to earnings
Areas to Watch
ROE of -30.1% — below average capital efficiency
Currently unprofitable
Expensive relative to growth rate
4.4% revenue growth
Grey zone — moderate 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 : GILD
The strongest argument for GILD centers on Return on Equity, Profit Margin, Operating Margin. Profitability is solid with margins at 31.0% and operating margin at 39.3%.
Bear Case : CNC
The primary concerns for CNC are Return on Equity, Profit Margin.
Bear Case : GILD
The primary concerns for GILD are PEG Ratio, Revenue Growth, Altman Z-Score.
Key Dynamics to Monitor
CNC profiles as a turnaround stock while GILD is a value play — different risk/reward profiles.
CNC carries more volatility with a beta of 1.09 — expect wider price swings.
CNC is growing revenue faster at 5.1% — sustainability is the question.
CNC generates stronger free cash flow (3.4B), providing more financial flexibility.
Bottom Line
GILD scores higher overall (68/100 vs 57/100), backed by strong 31.0% margins. 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.
Gilead Sciences Inc
HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA
Gilead Sciences, Inc. is an American biopharmaceutical company headquartered in Foster City, California, that focuses on researching and developing antiviral drugs used in the treatment of HIV, hepatitis B, hepatitis C, and influenza, including Harvoni and Sovaldi.
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