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

Profitability

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

Net Margins Return on Equity Return on Assets
Centene Corporation 1.72% 14.62% 4.24%
Centene Corporation Competitors 1.70% 10.53% 3.41%

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Centene Corporation and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Centene Corporation 1 4 12 0 2.65
Centene Corporation Competitors 79 860 1413 22 2.58

Centene Corporation presently has a consensus target price of $92.50, suggesting a potential downside of 1.26%. As a group, “Managed Health Care” companies have a potential upside of 1.73%. Given Centene Corporation’s rivals higher possible upside, analysts plainly believe Centene Corporation has less favorable growth aspects than its rivals.

Institutional & Insider Ownership

92.4% of Centene Corporation shares are owned by institutional investors. Comparatively, 90.2% of shares of all “Managed Health Care” companies are owned by institutional investors. 3.0% of Centene Corporation shares are owned by insiders. Comparatively, 2.4% of shares of all “Managed Health Care” companies are owned 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.

Earnings & Valuation

This table compares Centene Corporation and its rivals gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Centene Corporation $43.65 billion $2.19 billion 20.59
Centene Corporation Competitors $52.30 billion $3.74 billion 17.51

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

Volatility and Risk

Centene Corporation has a beta of 0.68, indicating that its share price is 32% less volatile than the S&P 500. Comparatively, Centene Corporation’s rivals have a beta of 0.76, indicating that their average share price is 24% less volatile than the S&P 500.

Summary

Centene Corporation beats its rivals 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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