WallStSmart

Centene Corp (CNC)vsKLA Corporation (KLAC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Centene Corp generates 1262% more annual revenue ($178.33B vs $13.10B). KLAC leads profitability with a 35.7% profit margin vs -3.6%. CNC appears more attractively valued with a PEG of 1.02. KLAC earns a higher WallStSmart Score of 68/100 (B-).

CNC

Buy

57

out of 100

Grade: C

Growth: 7.3Profit: 3.5Value: 5.3Quality: 5.8
Piotroski: 4/9Altman Z: 2.71

KLAC

Strong Buy

68

out of 100

Grade: B-

Growth: 6.0Profit: 10.0Value: 4.3Quality: 7.0
Piotroski: 6/9Altman Z: 2.70

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CNC2 strengths · Avg: 9.0/10
Price/BookValuation
1.3x10/10

Reasonable price relative to book value

Free Cash FlowQuality
$3.40B8/10

Generating 3.4B in free cash flow

KLAC4 strengths · Avg: 10.0/10
Market CapQuality
$226.82B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
95.0%10/10

Every $100 of equity generates 95 in profit

Profit MarginProfitability
35.7%10/10

Keeps 36 of every $100 in revenue as profit

Operating MarginProfitability
41.2%10/10

Strong operational efficiency at 41.2%

Areas to Watch

CNC2 concerns · Avg: 1.5/10
Return on EquityProfitability
-26.0%2/10

ROE of -26.0% — below average capital efficiency

Profit MarginProfitability
-3.6%1/10

Currently unprofitable

KLAC4 concerns · Avg: 2.8/10
PEG RatioValuation
1.834/10

Expensive relative to growth rate

Debt/EquityHealth
1.153/10

Elevated debt levels

P/E RatioValuation
48.8x2/10

Premium valuation, high expectations priced in

Price/BookValuation
43.6x2/10

Trading at 43.6x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : CNC

The strongest argument for CNC centers on Price/Book, Free Cash Flow. PEG of 1.02 suggests the stock is reasonably priced for its growth.

Bull Case : KLAC

The strongest argument for KLAC centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 35.7% and operating margin at 41.2%. Revenue growth of 11.5% demonstrates continued momentum.

Bear Case : CNC

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

Bear Case : KLAC

The primary concerns for KLAC are PEG Ratio, Debt/Equity, P/E Ratio. A P/E of 48.8x leaves little room for execution misses.

Key Dynamics to Monitor

CNC profiles as a turnaround stock while KLAC is a mature play — different risk/reward profiles.

KLAC carries more volatility with a beta of 1.44 — expect wider price swings.

KLAC is growing revenue faster at 11.5% — sustainability is the question.

CNC generates stronger free cash flow (3.4B), providing more financial flexibility.

Bottom Line

KLAC scores higher overall (68/100 vs 57/100), backed by strong 35.7% margins and 11.5% 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.

KLA Corporation

TECHNOLOGY · SEMICONDUCTOR EQUIPMENT & MATERIALS · USA

KLA Corporation is a capital equipment company based in Milpitas, California. It supplies process control and yield management systems for the semiconductor industry and other related nanoelectronics industries. The company's products and services are intended for all phases of wafer, reticle, integrated circuit (IC) and packaging production, from research and development to final volume manufacturing.

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