Centene Corp (CNC)vsRoyal Bank of Canada (RY)
CNC
Centene Corp
$62.33
-0.59%
HEALTHCARE · Cap: $32.19B
RY
Royal Bank of Canada
$194.04
-0.48%
FINANCIAL SERVICES · Cap: $277.29B
Smart Verdict
WallStSmart Research — data-driven comparison
Centene Corp generates 171% more annual revenue ($178.33B vs $65.72B). RY leads profitability with a 33.7% profit margin vs -3.6%. CNC appears more attractively valued with a PEG of 1.25. RY earns a higher WallStSmart Score of 70/100 (B-).
CNC
Buy57
out of 100
Grade: C
RY
Strong Buy70
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
Intrinsic value data unavailable for RY.
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
Keeps 34 of every $100 in revenue as profit
Strong operational efficiency at 45.3%
Generating 20.8B in free cash flow
Reasonable price relative to book value
16.1% revenue growth
Areas to Watch
ROE of -30.1% — below average capital efficiency
Currently unprofitable
Expensive relative to growth rate
Distress zone — elevated risk
Elevated debt levels
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 : RY
The strongest argument for RY centers on Market Cap, Profit Margin, Operating Margin. Profitability is solid with margins at 33.7% and operating margin at 45.3%. Revenue growth of 16.1% demonstrates continued momentum.
Bear Case : CNC
The primary concerns for CNC are Return on Equity, Profit Margin.
Bear Case : RY
The primary concerns for RY are PEG Ratio, Altman Z-Score, Debt/Equity. Debt-to-equity of 2.77 is elevated, increasing financial risk.
Key Dynamics to Monitor
CNC profiles as a turnaround stock while RY is a growth play — different risk/reward profiles.
CNC carries more volatility with a beta of 1.09 — expect wider price swings.
RY is growing revenue faster at 16.1% — sustainability is the question.
RY generates stronger free cash flow (20.8B), providing more financial flexibility.
Bottom Line
RY scores higher overall (70/100 vs 57/100), backed by strong 33.7% margins and 16.1% 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.
Royal Bank of Canada
FINANCIAL SERVICES · BANKS - DIVERSIFIED · USA
Royal Bank of Canada is a globally diversified financial services company. The company is headquartered in Toronto, Canada.
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