Centene Corp (CNC)vsMerck & Company Inc (MRK)
CNC
Centene Corp
$61.82
-3.27%
HEALTHCARE · Cap: $32.81B
MRK
Merck & Company Inc
$130.40
-1.11%
HEALTHCARE · Cap: $307.25B
Smart Verdict
WallStSmart Research — data-driven comparison
Centene Corp generates 171% more annual revenue ($178.33B vs $65.77B). MRK leads profitability with a 13.6% profit margin vs -3.6%. CNC appears more attractively valued with a PEG of 1.28. CNC earns a higher WallStSmart Score of 57/100 (C).
CNC
Buy57
out of 100
Grade: C
MRK
Hold50
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+84.8%
Fair Value
$265.88
Current Price
$61.82
$204.06 discount
Margin of Safety
-62.3%
Fair Value
$81.23
Current Price
$130.40
$49.17 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
Strong operational efficiency at 38.6%
Generating 2.9B in free cash flow
Areas to Watch
ROE of -30.1% — below average capital efficiency
Currently unprofitable
Premium valuation, high expectations priced in
4.9% revenue growth
Elevated debt levels
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : CNC
The strongest argument for CNC centers on Price/Book, Free Cash Flow. PEG of 1.28 suggests the stock is reasonably priced for its growth.
Bull Case : MRK
The strongest argument for MRK centers on Market Cap, Operating Margin, Free Cash Flow.
Bear Case : CNC
The primary concerns for CNC are Return on Equity, Profit Margin.
Bear Case : MRK
The primary concerns for MRK are P/E Ratio, Revenue Growth, Debt/Equity.
Key Dynamics to Monitor
CNC profiles as a turnaround stock while MRK is a value play — different risk/reward profiles.
CNC carries more volatility with a beta of 1.08 — 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 50/100). Both earn "Buy" and "Hold" 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.
Merck & Company Inc
HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA
Merck & Co. is an American multinational pharmaceutical company headquartered in Kenilworth, New Jersey. It is named after the Merck family, which set up Merck Group in Germany in 1668.
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