Cigna Group (CI) vs Centene Corporation (CNC)

Cigna Group and Centene Corporation are both Healthcare Plans companies. Cigna Group is the larger, with a market value of $69.9B against $30.6B — 2.3× the size. Centene Corporation has negative trailing earnings, so its P/E is not meaningful; Cigna Group trades at 11.3×. Centene Corporation grew revenue faster over the last twelve months: 13.9% against 7.77%. Cigna Group has the higher net margin (2.27% vs −2.51%) and the higher return on invested capital (9.09% vs −30.2%). Across the 20 metrics below, Centene Corporation leads on 12 and Cigna Group on 8.

Valuation

Metric CI CNC Healthcare Plans median
P/E 11.25 n/m 23.75
P/S 0.25 0.15 0.40
P/B 1.67 1.35 2.48
Price to free cash flow 7.85 3.41 11.15
EV/EBITDA 7.66 n/m 10.94
EV/Sales 0.34 0.10 0.37
Earnings yield 8.89% (16.82%) 3.25%
Free cash flow yield 12.74% 29.32% 8.15%

Profitability

Metric CI CNC Healthcare Plans median
Gross margin 88.51% 7.82% 19.04%
Operating margin 3.53% (2.78%) 1.93%
Net margin 2.27% (2.51%) 1.04%
Free cash flow margin 3.23% 4.41% 3.18%
Return on equity 15.40% (20.35%) 12.48%
Return on assets 4.16% (6.02%) 2.98%
Return on invested capital 9.09% (30.17%) 2.04%

Growth

Metric CI CNC Healthcare Plans median
Revenue growth (TTM) 7.77% 13.89% 7.57%
EPS growth (last fiscal year) 83.00% (314.42%) —
Revenue growth, 5-year CAGR 11.38% 11.88% 11.88%
Net income growth, 5-year CAGR (6.77%) 0.00% 0.00%

Health

Metric CI CNC Healthcare Plans median
Debt to equity 0.74 0.71 0.70
Current ratio 0.74 1.15 1.32
Net debt to EBITDA 1.99 0.46 0.05

Dividend

Metric CI CNC Healthcare Plans median
Dividend yield 2.03% — 1.53%
Payout ratio 0.22 0.00 0.00

Size

Metric CI CNC Healthcare Plans median
Market cap 69.89b 30.59b 20.34b

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