WallStSmart

Centene Corp (CNC)vs3M Company (MMM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Centene Corp generates 613% more annual revenue ($178.33B vs $25.02B). MMM leads profitability with a 11.1% profit margin vs -3.6%. CNC appears more attractively valued with a PEG of 1.25. CNC earns a higher WallStSmart Score of 57/100 (C).

CNC

Buy

57

out of 100

Grade: C

Growth: 7.3Profit: 3.5Value: 7.0Quality: 6.5
Piotroski: 6/9Altman Z: 2.83

MMM

Buy

56

out of 100

Grade: C

Growth: 2.7Profit: 8.0Value: 3.3Quality: 5.5
Piotroski: 5/9Altman Z: 2.82
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CNCUndervalued (+85.0%)

Margin of Safety

+85.0%

Fair Value

$268.78

Current Price

$62.33

$206.45 discount

UndervaluedFair: $268.78Overvalued
MMMSignificantly Overvalued (-51.4%)

Margin of Safety

-51.4%

Fair Value

$114.14

Current Price

$153.76

$39.62 premium

UndervaluedFair: $114.14Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CNC2 strengths · Avg: 9.0/10
Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Free Cash FlowQuality
$3.40B8/10

Generating 3.4B in free cash flow

MMM3 strengths · Avg: 9.0/10
Return on EquityProfitability
85.4%10/10

Every $100 of equity generates 85 in profit

Market CapQuality
$82.53B9/10

Large-cap with strong market position

Operating MarginProfitability
23.3%8/10

Strong operational efficiency at 23.3%

Areas to Watch

CNC2 concerns · Avg: 1.5/10
Return on EquityProfitability
-30.1%2/10

ROE of -30.1% — below average capital efficiency

Profit MarginProfitability
-3.6%1/10

Currently unprofitable

MMM4 concerns · Avg: 3.5/10
PEG RatioValuation
1.684/10

Expensive relative to growth rate

P/E RatioValuation
30.5x4/10

Premium valuation, high expectations priced in

Revenue GrowthGrowth
1.3%4/10

1.3% revenue growth

Price/BookValuation
24.6x2/10

Trading at 24.6x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : CNC

The strongest argument for CNC centers on Price/Book, Free Cash Flow. PEG of 1.25 suggests the stock is reasonably priced for its growth.

Bull Case : MMM

The strongest argument for MMM centers on Return on Equity, Market Cap, Operating Margin.

Bear Case : CNC

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

Bear Case : MMM

The primary concerns for MMM are PEG Ratio, P/E Ratio, Revenue Growth. Debt-to-equity of 3.85 is elevated, increasing financial risk.

Key Dynamics to Monitor

CNC profiles as a turnaround stock while MMM is a value play — different risk/reward profiles.

MMM 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

CNC scores higher overall (57/100 vs 56/100). 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.

3M Company

INDUSTRIALS · CONGLOMERATES · USA

The 3M Company is an American multinational conglomerate corporation operating in the fields of industry, worker safety, US health care, and consumer goods. The company produces over 60,000 products under several brands, including adhesives, abrasives, laminates, passive fire protection, personal protective equipment, window films, paint protection films, dental and orthodontic products, electrical and electronic connecting and insulating materials, medical products, car-care products, electronic circuits, healthcare software and optical films. It is based in Maplewood, a suburb of Saint Paul, Minnesota.

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