Centene Corp (CNC)vsThe Coca-Cola Company (KO)
CNC
Centene Corp
$62.33
-0.59%
HEALTHCARE · Cap: $32.19B
KO
The Coca-Cola Company
$79.48
-0.68%
CONSUMER DEFENSIVE · Cap: $348.11B
Smart Verdict
WallStSmart Research — data-driven comparison
Centene Corp generates 262% more annual revenue ($178.33B vs $49.28B). KO leads profitability with a 27.8% profit margin vs -3.6%. CNC appears more attractively valued with a PEG of 1.25. KO earns a higher WallStSmart Score of 65/100 (B-).
CNC
Buy57
out of 100
Grade: C
KO
Strong Buy65
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
-28.8%
Fair Value
$61.66
Current Price
$79.48
$17.82 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Generating 3.4B in free cash flow
Mega-cap, among the largest globally
Every $100 of equity generates 41 in profit
Strong operational efficiency at 35.1%
Keeps 28 of every $100 in revenue as profit
Generating 1.8B in free cash flow
Areas to Watch
ROE of -30.1% — below average capital efficiency
Currently unprofitable
Moderate valuation
Trading at 10.2x book value
Elevated debt levels
Expensive relative to growth rate
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 : KO
The strongest argument for KO centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 27.8% and operating margin at 35.1%. Revenue growth of 12.1% demonstrates continued momentum.
Bear Case : CNC
The primary concerns for CNC are Return on Equity, Profit Margin.
Bear Case : KO
The primary concerns for KO are P/E Ratio, Price/Book, Debt/Equity.
Key Dynamics to Monitor
CNC profiles as a turnaround stock while KO is a mature play — different risk/reward profiles.
CNC carries more volatility with a beta of 1.09 — expect wider price swings.
KO is growing revenue faster at 12.1% — sustainability is the question.
CNC generates stronger free cash flow (3.4B), providing more financial flexibility.
Bottom Line
KO scores higher overall (65/100 vs 57/100), backed by strong 27.8% margins and 12.1% revenue growth. 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.
The Coca-Cola Company
CONSUMER DEFENSIVE · BEVERAGES - NON-ALCOHOLIC · USA
The Coca-Cola Company is an American multinational beverage corporation incorporated under Delaware's General Corporation Law and headquartered in Atlanta, Georgia. The Coca-Cola Company has interests in the manufacturing, retailing, and marketing of nonalcoholic beverage concentrates and syrups.
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