CNC vs. CVS: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at CNC and CVS, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
CVS’s market capitalization of 85.30 billion USD is significantly greater than CNC’s 16.58 billion USD, highlighting its more substantial market valuation.
With betas of 0.46 for CNC and 0.56 for CVS, both stocks show similar sensitivity to overall market movements.
| Symbol | CNC | CVS |
|---|---|---|
| Company Name | Centene Corporation | CVS Health Corporation |
| Country | US | US |
| Sector | Healthcare | Healthcare |
| Industry | Medical - Healthcare Plans | Medical - Healthcare Plans |
| CEO | Sarah M. London | J. David Joyner CEBS |
| Price | 33.31 USD | 67.43 USD |
| Market Cap | 16.58 billion USD | 85.30 billion USD |
| Beta | 0.46 | 0.56 |
| Exchange | NYSE | NYSE |
| IPO Date | December 13, 2001 | November 20, 1996 |
| ADR | No | No |
Historical Performance
This chart compares the performance of CNC and CVS by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.
Data is adjusted for dividends and splits.
Profitability
Return on Equity
CNC
12.67%
Medical - Healthcare Plans Industry
- Max
- 13.94%
- Q3
- 13.62%
- Median
- 11.42%
- Q1
- 7.74%
- Min
- 6.98%
CNC’s Return on Equity of 12.67% is on par with the norm for the Medical - Healthcare Plans industry, indicating its profitability relative to shareholder equity is typical for the sector.
CVS
6.98%
Medical - Healthcare Plans Industry
- Max
- 13.94%
- Q3
- 13.62%
- Median
- 11.42%
- Q1
- 7.74%
- Min
- 6.98%
CVS’s Return on Equity of 6.98% is in the lower quartile for the Medical - Healthcare Plans industry. This indicates a less efficient generation of profit from its equity base when compared to its competitors.
Return on Invested Capital
CNC
5.50%
Medical - Healthcare Plans Industry
- Max
- 15.50%
- Q3
- 7.12%
- Median
- 5.48%
- Q1
- -3.47%
- Min
- -15.02%
CNC’s Return on Invested Capital of 5.50% is in line with the norm for the Medical - Healthcare Plans industry, reflecting a standard level of efficiency in generating profits from its capital base.
CVS
4.03%
Medical - Healthcare Plans Industry
- Max
- 15.50%
- Q3
- 7.12%
- Median
- 5.48%
- Q1
- -3.47%
- Min
- -15.02%
CVS’s Return on Invested Capital of 4.03% is in line with the norm for the Medical - Healthcare Plans industry, reflecting a standard level of efficiency in generating profits from its capital base.
Net Profit Margin
CNC
2.04%
Medical - Healthcare Plans Industry
- Max
- 3.23%
- Q3
- 2.62%
- Median
- 1.70%
- Q1
- 1.27%
- Min
- 1.22%
CNC’s Net Profit Margin of 2.04% is aligned with the median group of its peers in the Medical - Healthcare Plans industry. This indicates its ability to convert revenue into profit is typical for the sector.
CVS
1.39%
Medical - Healthcare Plans Industry
- Max
- 3.23%
- Q3
- 2.62%
- Median
- 1.70%
- Q1
- 1.27%
- Min
- 1.22%
CVS’s Net Profit Margin of 1.39% is aligned with the median group of its peers in the Medical - Healthcare Plans industry. This indicates its ability to convert revenue into profit is typical for the sector.
Operating Profit Margin
CNC
2.13%
Medical - Healthcare Plans Industry
- Max
- 4.30%
- Q3
- 3.77%
- Median
- 2.61%
- Q1
- 1.60%
- Min
- -1.64%
CNC’s Operating Profit Margin of 2.13% is around the midpoint for the Medical - Healthcare Plans industry, indicating that its efficiency in managing core business operations is typical for the sector.
CVS
2.54%
Medical - Healthcare Plans Industry
- Max
- 4.30%
- Q3
- 3.77%
- Median
- 2.61%
- Q1
- 1.60%
- Min
- -1.64%
CVS’s Operating Profit Margin of 2.54% is around the midpoint for the Medical - Healthcare Plans industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | CNC | CVS |
|---|---|---|
| Return on Equity (TTM) | 12.67% | 6.98% |
| Return on Assets (TTM) | 3.97% | 2.07% |
| Return on Invested Capital (TTM) | 5.50% | 4.03% |
| Net Profit Margin (TTM) | 2.04% | 1.39% |
| Operating Profit Margin (TTM) | 2.13% | 2.54% |
| Gross Profit Margin (TTM) | 15.47% | 14.05% |
Financial Strength
Current Ratio
CNC
1.11
Medical - Healthcare Plans Industry
- Max
- 1.91
- Q3
- 1.63
- Median
- 1.43
- Q1
- 0.85
- Min
- 0.78
CNC’s Current Ratio of 1.11 aligns with the median group of the Medical - Healthcare Plans industry, indicating that its short-term liquidity is in line with its sector peers.
CVS
0.82
Medical - Healthcare Plans Industry
- Max
- 1.91
- Q3
- 1.63
- Median
- 1.43
- Q1
- 0.85
- Min
- 0.78
CVS’s Current Ratio of 0.82 falls into the lower quartile for the Medical - Healthcare Plans industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
Debt-to-Equity Ratio
CNC
0.66
Medical - Healthcare Plans Industry
- Max
- 1.06
- Q3
- 0.86
- Median
- 0.75
- Q1
- 0.66
- Min
- 0.66
CNC’s Debt-to-Equity Ratio of 0.66 is typical for the Medical - Healthcare Plans industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
CVS
1.06
Medical - Healthcare Plans Industry
- Max
- 1.06
- Q3
- 0.86
- Median
- 0.75
- Q1
- 0.66
- Min
- 0.66
CVS’s leverage is in the upper quartile of the Medical - Healthcare Plans industry, with a Debt-to-Equity Ratio of 1.06. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.
Interest Coverage Ratio
CNC
5.19
Medical - Healthcare Plans Industry
- Max
- 6.23
- Q3
- 6.23
- Median
- 5.19
- Q1
- 4.64
- Min
- 3.18
CNC’s Interest Coverage Ratio of 5.19 is positioned comfortably within the norm for the Medical - Healthcare Plans industry, indicating a standard and healthy capacity to cover its interest payments.
CVS
3.18
Medical - Healthcare Plans Industry
- Max
- 6.23
- Q3
- 6.23
- Median
- 5.19
- Q1
- 4.64
- Min
- 3.18
In the lower quartile for the Medical - Healthcare Plans industry, CVS’s Interest Coverage Ratio of 3.18 indicates a tighter cushion for servicing debt, suggesting less financial flexibility than many of its competitors.
Financial Strength at a Glance
| Symbol | CNC | CVS |
|---|---|---|
| Current Ratio (TTM) | 1.11 | 0.82 |
| Quick Ratio (TTM) | 1.11 | 0.63 |
| Debt-to-Equity Ratio (TTM) | 0.66 | 1.06 |
| Debt-to-Asset Ratio (TTM) | 0.21 | 0.32 |
| Net Debt-to-EBITDA Ratio (TTM) | 0.57 | 4.80 |
| Interest Coverage Ratio (TTM) | 5.19 | 3.18 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for CNC and CVS. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
CNC
0.00%
Medical - Healthcare Plans Industry
- Max
- 3.88%
- Q3
- 1.78%
- Median
- 0.73%
- Q1
- 0.00%
- Min
- 0.00%
CNC currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.
CVS
3.94%
Medical - Healthcare Plans Industry
- Max
- 3.88%
- Q3
- 1.78%
- Median
- 0.73%
- Q1
- 0.00%
- Min
- 0.00%
CVS’s Dividend Yield of 3.94% is exceptionally high, placing it well above the typical range for the Medical - Healthcare Plans industry. While this may seem attractive, an unusually high yield can sometimes be a warning sign, reflecting a falling stock price or market concerns about the dividend’s sustainability.
Dividend Payout Ratio
CNC
0.00%
Medical - Healthcare Plans Industry
- Max
- 63.88%
- Q3
- 29.91%
- Median
- 12.57%
- Q1
- 0.00%
- Min
- 0.00%
CNC has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.
CVS
63.88%
Medical - Healthcare Plans Industry
- Max
- 63.88%
- Q3
- 29.91%
- Median
- 12.57%
- Q1
- 0.00%
- Min
- 0.00%
CVS’s Dividend Payout Ratio of 63.88% is in the upper quartile for the Medical - Healthcare Plans industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.
Dividend at a Glance
| Symbol | CNC | CVS |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 3.94% |
| Dividend Payout Ratio (TTM) | 0.00% | 63.88% |
Valuation
Price-to-Earnings Ratio
CNC
4.79
Medical - Healthcare Plans Industry
- Max
- 18.17
- Q3
- 17.32
- Median
- 15.48
- Q1
- 13.55
- Min
- 12.84
CNC’s P/E Ratio of 4.79 is below the typical range for the Medical - Healthcare Plans industry. This may indicate that the stock is potentially undervalued, or it could reflect market concerns about the company’s future prospects.
CVS
16.10
Medical - Healthcare Plans Industry
- Max
- 18.17
- Q3
- 17.32
- Median
- 15.48
- Q1
- 13.55
- Min
- 12.84
CVS’s P/E Ratio of 16.10 is within the middle range for the Medical - Healthcare Plans industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
Forward P/E to Growth Ratio
CNC
0.37
Medical - Healthcare Plans Industry
- Max
- 1.41
- Q3
- 1.09
- Median
- 0.85
- Q1
- 0.79
- Min
- 0.60
CNC’s Forward PEG Ratio of 0.37 is below the typical range for the Medical - Healthcare Plans industry. This is a strong indicator that the stock may be undervalued, as its price appears low given its future growth prospects.
CVS
1.39
Medical - Healthcare Plans Industry
- Max
- 1.41
- Q3
- 1.09
- Median
- 0.85
- Q1
- 0.79
- Min
- 0.60
A Forward PEG Ratio of 1.39 places CVS in the upper quartile for the Medical - Healthcare Plans industry. This suggests the stock is potentially expensive compared to its peers relative to its growth forecast, which may warrant caution.
Price-to-Sales Ratio
CNC
0.10
Medical - Healthcare Plans Industry
- Max
- 0.94
- Q3
- 0.64
- Median
- 0.43
- Q1
- 0.27
- Min
- 0.16
CNC’s P/S Ratio of 0.10 falls below the typical floor for the Medical - Healthcare Plans industry. This could suggest the stock is overlooked or deeply undervalued relative to its sales, but may also reflect significant market concerns about its future.
CVS
0.23
Medical - Healthcare Plans Industry
- Max
- 0.94
- Q3
- 0.64
- Median
- 0.43
- Q1
- 0.27
- Min
- 0.16
In the lower quartile for the Medical - Healthcare Plans industry, CVS’s P/S Ratio of 0.23 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.
Price-to-Book Ratio
CNC
0.59
Medical - Healthcare Plans Industry
- Max
- 4.08
- Q3
- 3.83
- Median
- 2.63
- Q1
- 1.74
- Min
- 0.96
CNC’s P/B Ratio of 0.59 is below the established floor for the Medical - Healthcare Plans industry. This may signal that the market is deeply pessimistic or has overlooked the company, potentially offering its asset base at a significant discount.
CVS
1.11
Medical - Healthcare Plans Industry
- Max
- 4.08
- Q3
- 3.83
- Median
- 2.63
- Q1
- 1.74
- Min
- 0.96
CVS’s P/B Ratio of 1.11 is in the lower quartile for the Medical - Healthcare Plans industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.
Valuation at a Glance
| Symbol | CNC | CVS |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 4.79 | 16.10 |
| Forward PEG Ratio (TTM) | 0.37 | 1.39 |
| Price-to-Sales Ratio (P/S, TTM) | 0.10 | 0.23 |
| Price-to-Book Ratio (P/B, TTM) | 0.59 | 1.11 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 11.11 | 14.36 |
| EV-to-EBITDA (TTM) | 3.26 | 10.56 |
| EV-to-Sales (TTM) | 0.12 | 0.41 |