WallStSmart

Centene Corp (CNC)vsHumana Inc (HUM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Centene Corp generates 24% more annual revenue ($180.30B vs $145.68B). HUM leads profitability with a 0.9% profit margin vs -2.8%. CNC appears more attractively valued with a PEG of 0.81. HUM earns a higher WallStSmart Score of 60/100 (C+).

CNC

Buy

56

out of 100

Grade: C

Growth: 6.7Profit: 3.0Value: 7.7Quality: 6.5
Piotroski: 6/9Altman Z: 2.83

HUM

Buy

60

out of 100

Grade: C+

Growth: 8.0Profit: 4.5Value: 4.7Quality: 7.0
Piotroski: 4/9Altman Z: 3.91
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CNCUndervalued (+84.8%)

Margin of Safety

+84.8%

Fair Value

$265.86

Current Price

$66.42

$199.44 discount

UndervaluedFair: $265.86Overvalued
HUMUndervalued (+8.5%)

Margin of Safety

+8.5%

Fair Value

$425.30

Current Price

$409.80

$15.50 discount

UndervaluedFair: $425.30Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CNC3 strengths · Avg: 8.7/10
Price/BookValuation
1.5x10/10

Reasonable price relative to book value

PEG RatioValuation
0.818/10

Growing faster than its price suggests

Free Cash FlowQuality
$4.20B8/10

Generating 4.2B in free cash flow

HUM4 strengths · Avg: 8.5/10
Altman Z-ScoreHealth
3.9110/10

Safe zone — low bankruptcy risk

Price/BookValuation
2.6x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
26.2%8/10

Revenue surging 26.2% year-over-year

EPS GrowthGrowth
27.1%8/10

Earnings expanding 27.1% YoY

Areas to Watch

CNC4 concerns · Avg: 2.5/10
Revenue GrowthGrowth
4.6%4/10

4.6% revenue growth

Operating MarginProfitability
3.8%3/10

Operating margin of 3.8%

Return on EquityProfitability
-22.6%2/10

ROE of -22.6% — below average capital efficiency

Profit MarginProfitability
-2.8%1/10

Currently unprofitable

HUM4 concerns · Avg: 3.5/10
PEG RatioValuation
2.194/10

Expensive relative to growth rate

P/E RatioValuation
36.9x4/10

Premium valuation, high expectations priced in

Return on EquityProfitability
6.7%3/10

ROE of 6.7% — below average capital efficiency

Profit MarginProfitability
0.9%3/10

0.9% margin — thin

Comparative Analysis Report

WallStSmart Research

Bull 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 : HUM

The strongest argument for HUM centers on Altman Z-Score, Price/Book, Revenue Growth. Revenue growth of 26.2% demonstrates continued momentum.

Bear Case : CNC

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

Bear Case : HUM

The primary concerns for HUM are PEG Ratio, P/E Ratio, Return on Equity. Thin 0.9% margins leave little buffer for downturns.

Key Dynamics to Monitor

CNC profiles as a turnaround stock while HUM is a growth play — different risk/reward profiles.

CNC carries more volatility with a beta of 1.11 — expect wider price swings.

HUM is growing revenue faster at 26.2% — sustainability is the question.

CNC generates stronger free cash flow (4.2B), providing more financial flexibility.

Bottom Line

HUM scores higher overall (60/100 vs 56/100) and 26.2% revenue growth. CNC offers better value entry with a 84.8% 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.

Humana Inc

HEALTHCARE · HEALTHCARE PLANS · USA

Humana Inc. is a for-profit American health insurance company based in Louisville, Kentucky.

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