Analyzing Centene Corporation (CNC) and The Competition
Centene Corporation (NYSE: CNC) is one of 14 public companies in the “Managed Health Care” industry, but how does it contrast to its competitors? We will compare Centene Corporation to similar companies based on the strength of its earnings, valuation, profitability, risk, dividends, institutional ownership and analyst recommendations.
Volatility and Risk
Centene Corporation has a beta of 0.68, suggesting that its stock price is 32% less volatile than the S&P 500. Comparatively, Centene Corporation’s competitors have a beta of 0.76, suggesting that their average stock price is 24% less volatile than the S&P 500.
This table compares Centene Corporation and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Centene Corporation Competitors||1.70%||10.53%||3.41%|
Earnings & Valuation
This table compares Centene Corporation and its competitors top-line revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Centene Corporation||$43.65 billion||$2.19 billion||19.98|
|Centene Corporation Competitors||$52.30 billion||$3.74 billion||17.28|
Centene Corporation’s competitors have higher revenue and earnings than Centene Corporation. Centene Corporation is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.
Institutional & Insider Ownership
92.1% of Centene Corporation shares are held by institutional investors. Comparatively, 90.2% of shares of all “Managed Health Care” companies are held by institutional investors. 3.0% of Centene Corporation shares are held by insiders. Comparatively, 2.5% of shares of all “Managed Health Care” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
This is a summary of current recommendations and price targets for Centene Corporation and its competitors, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Centene Corporation Competitors||79||871||1420||22||2.58|
Centene Corporation currently has a consensus target price of $93.38, suggesting a potential upside of 2.70%. As a group, “Managed Health Care” companies have a potential upside of 3.82%. Given Centene Corporation’s competitors higher possible upside, analysts clearly believe Centene Corporation has less favorable growth aspects than its competitors.
Centene Corporation beats its competitors on 8 of the 13 factors compared.
Centene Corporation Company Profile
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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