WallStSmart

Centene Corp (CNC)vsTarget Corporation (TGT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Centene Corp generates 68% more annual revenue ($178.33B vs $106.38B). TGT leads profitability with a 3.2% 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

TGT

Buy

52

out of 100

Grade: C-

Growth: 3.3Profit: 5.5Value: 5.3Quality: 6.0
Piotroski: 3/9Altman Z: 2.47
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
TGTUndervalued (+4.0%)

Margin of Safety

+4.0%

Fair Value

$119.45

Current Price

$122.57

$3.12 discount

UndervaluedFair: $119.45Overvalued

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

TGT4 strengths · Avg: 8.8/10
Market CapQuality
$60.48B9/10

Large-cap with strong market position

Return on EquityProfitability
21.0%9/10

Every $100 of equity generates 21 in profit

Debt/EquityHealth
0.289/10

Conservative balance sheet, low leverage

P/E RatioValuation
17.6x8/10

Attractively priced relative to earnings

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

TGT4 concerns · Avg: 2.8/10
Profit MarginProfitability
3.2%3/10

3.2% margin — thin

Operating MarginProfitability
4.5%3/10

Operating margin of 4.5%

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
2.512/10

Expensive relative to growth rate

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 : TGT

The strongest argument for TGT centers on Market Cap, Return on Equity, Debt/Equity.

Bear Case : CNC

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

Bear Case : TGT

The primary concerns for TGT are Profit Margin, Operating Margin, Piotroski F-Score. Thin 3.2% margins leave little buffer for downturns.

Key Dynamics to Monitor

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

CNC carries more volatility with a beta of 1.09 — expect wider price swings.

TGT is growing revenue faster at 6.7% — 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 52/100). 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.

Target Corporation

CONSUMER DEFENSIVE · DISCOUNT STORES · USA

Target Corporation is an American retail corporation. Their retail formats include the discount store Target, the hypermarket SuperTarget, and small-format stores previously named CityTarget and TargetExpress before being consolidated under the Target branding.

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