Head to Head Review: Centene Corporation (CNC) vs. Its Competitors

Centene Corporation (NYSE: CNC) is one of 14 public companies in the “Managed Health Care” industry, but how does it compare to its peers? We will compare Centene Corporation to similar companies based on the strength of its institutional ownership, risk, dividends, analyst recommendations, valuation, profitability and earnings.

Earnings and Valuation

This table compares Centene Corporation and its peers top-line revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Centene Corporation $40.61 billion $562.00 million 19.68
Centene Corporation Competitors $50.73 billion $1.52 billion 20.35

Centene Corporation’s peers have higher revenue and earnings than Centene Corporation. Centene Corporation is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Volatility & Risk

Centene Corporation has a beta of 0.67, meaning that its share price is 33% less volatile than the S&P 500. Comparatively, Centene Corporation’s peers have a beta of 0.77, meaning that their average share price is 23% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for Centene Corporation and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Centene Corporation 1 4 13 0 2.67
Centene Corporation Competitors 79 890 1454 23 2.58

Centene Corporation presently has a consensus target price of $97.12, suggesting a potential upside of 1.12%. As a group, “Managed Health Care” companies have a potential downside of 17.36%. Given Centene Corporation’s stronger consensus rating and higher probable upside, analysts plainly believe Centene Corporation is more favorable than its peers.

Profitability

This table compares Centene Corporation and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Centene Corporation 1.81% 14.79% 4.34%
Centene Corporation Competitors 1.74% 10.90% 3.51%

Insider & Institutional Ownership

92.9% of Centene Corporation shares are held by institutional investors. Comparatively, 90.3% of shares of all “Managed Health Care” companies are held by institutional investors. 3.0% of Centene Corporation shares are held by insiders. Comparatively, 2.4% of shares of all “Managed Health Care” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Centene Corporation beats its peers on 8 of the 13 factors compared.

About Centene Corporation

Centene Corporation is a healthcare company. The Company provides a portfolio of services to government sponsored healthcare programs, focusing on under-insured and uninsured individuals. The Company operates through two segments: Managed Care and Specialty Services. The Company’s Managed Care segment provides health plan coverage to individuals, through government subsidized programs, including Medicaid, the State Children’s Health Insurance Program (CHIP), Long Term Care, Foster Care, dual-eligible individuals (Duals) and the Supplemental Security Income Program, also known as the Aged, Blind or Disabled Program (ABD), Medicare, and Health Insurance Marketplace. Its Specialty Services segment consists of its specialty companies offering a range of healthcare services and products to state programs, correctional facilities, healthcare organizations, employer groups and other commercial organizations, as well as to its own subsidiaries.

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