Centene Corporation (CNC) vs Elevance Health, Inc. (ELV)

Centene Corporation and Elevance Health, Inc. are both Healthcare Plans companies. Elevance Health, Inc. is the larger, with a market value of $86.4B against $30.6B — 2.8× the size. Centene Corporation has negative trailing earnings, so its P/E is not meaningful; Elevance Health, Inc. trades at 17.6×. Centene Corporation grew revenue faster over the last twelve months: 13.9% against 6.29%. Elevance Health, Inc. has the higher net margin (2.47% vs −2.51%) and the higher return on invested capital (11.8% vs −30.2%). Across the 20 metrics below, Elevance Health, Inc. leads on 12 and Centene Corporation on 8.

Valuation

Metric CNC ELV Healthcare Plans median
P/E n/m 17.60 23.75
P/S 0.15 0.43 0.40
P/B 1.35 1.91 2.48
Price to free cash flow 3.41 13.67 11.15
EV/EBITDA n/m 9.02 10.94
EV/Sales 0.10 0.40 0.37
Earnings yield (16.82%) 5.68% 3.25%
Free cash flow yield 29.32% 7.32% 8.15%

Profitability

Metric CNC ELV Healthcare Plans median
Gross margin 7.82% 15.12% 19.04%
Operating margin (2.78%) 3.63% 1.93%
Net margin (2.51%) 2.47% 1.04%
Free cash flow margin 4.41% 3.13% 3.18%
Return on equity (20.35%) 11.17% 12.48%
Return on assets (6.02%) 4.00% 2.98%
Return on invested capital (30.17%) 11.83% 2.04%

Growth

Metric CNC ELV Healthcare Plans median
Revenue growth (TTM) 13.89% 6.29% 7.57%
EPS growth (last fiscal year) (314.42%) (1.83%) —
Revenue growth, 5-year CAGR 11.88% 10.32% 11.88%
Net income growth, 5-year CAGR 0.00% 4.37% 0.00%

Health

Metric CNC ELV Healthcare Plans median
Debt to equity 0.71 0.69 0.70
Current ratio 1.15 1.52 1.32
Net debt to EBITDA 0.46 (0.44) 0.05

Dividend

Metric CNC ELV Healthcare Plans median
Dividend yield — 1.24% 1.53%
Payout ratio 0.00 0.18 0.00

Size

Metric CNC ELV Healthcare Plans median
Market cap 30.59b 86.37b 20.34b

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