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Compare Stocks › CNC vs UNH

Centene Corporation (CNC) vs UnitedHealth Group Incorporated (UNH)

CNC
Centene Corporation
$35.57
VS
UNH
UnitedHealth Group Incorporated
$280.44

Rewards

CNC
  • ★Share count has been reduced by 11% over the past 4 years through buybacks, increasing each share's claim on earnings.
  • ★FCF yield of 28.9% is historically attractive — the business generates significant cash relative to its price.
  • ★Net debt/EBITDA of -0.8x means the company holds more cash than debt — a net cash position.
UNH
  • ★5 insider purchases over the past 12 months with a buy/sell ratio above 3:1 — a sustained pattern of insider confidence.
  • ★Dividend yield of 3.15% with a consistent or growing payout over the past 4 years.

Risks

CNC
  • ⚠ROIC has declined by 7.0 percentage points over the observed period, which may signal competitive erosion.
  • ⚠Gross margin of 10.5% is low, suggesting a competitive or commodity-like market with limited pricing power.
  • ⚠Free cash flow has declined at a 6.3% CAGR over the past 4 years — a concerning trend.
UNH
  • ⚠ROIC has declined by 7.9 percentage points over the observed period, which may signal competitive erosion.
  • ⚠Gross margin of 18.5% is low, suggesting a competitive or commodity-like market with limited pricing power.
  • ⚠FCF yield of 5.4% suggests reasonable valuation assuming continued moderate growth.

Key Valuation Metrics

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CNC
UNH
Valuation
$5.05B
Free Cash Flow
$13.86B
28.89%
FCF Yield
5.45%
N/A
Trailing P/E
21.18
8.69
Forward P/E
14.08
Quality & Moat
-6.84%
ROIC
0.64%
-33.28%
ROE
11.85%
10.47%
Gross Margin
18.53%
N/A
PEG Ratio
N/A
Balance Sheet Safety
0.91
Debt / Equity
0.82
N/A
Interest Coverage
N/A
-0.84
Net Debt / EBITDA
2.54
N/A
Dividend Yield
3.15%
CNC: 3Ties: 1UNH: 5
CNCUNH

Historical Fundamentals

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CNC

Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation.

UNH

Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation.

Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation.

$1 Retained Earnings Test

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CNC
N/A
Net losses over 3 years — test not applicable
Company had negative cumulative retained earnings
Σ Retained
$-667.0M
Δ Market Cap
$-24.93B
Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
UNH
$-7.37
created per $1 retained over 3 years
Market Cap Declined
Σ Retained
$26.63B
Δ Market Cap
$-196.16B
Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer

Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer

Discounted Cash Flow (DCF) Analysis

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CNC
95.3% Margin of Safety
Price is 95.3% below estimated fair value
Current Price: $35.57
Fair Value: $751.43
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued
UNH
4.9% Margin of Safety
Price is 4.9% below estimated fair value
Current Price: $280.44
Fair Value: $294.90
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued

Reverse DCF — Market-Implied Growth

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CNC

What growth rate is the market pricing in at $36?

-20.5%
Market-Implied FCF Growth Rate

Market below historical growth — potential opportunity.

UNH

What growth rate is the market pricing in at $280?

+11.1%
Market-Implied Owner Earnings Growth
Standard FCF implies +9.2%

The market implies +11.1% Owner Earnings growth, above historical trends.

Standard FCF implies a demanding +9.2%, reflecting heavy growth investment.

Economic Moat Score

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CNC
37/100
No Moat
70+ Wide · 40-69 Narrow · <40 None

No durable moat detected, though reinvestment efficiency shows some competitive positioning. The business lacks consistent evidence of sustainable advantages.

Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 4 years of fundamental data.
UNH
64/100
Narrow Moat
70+ Wide · 40-69 Narrow · <40 None

Narrow moat with revenue predictability as the key competitive advantage. Improving margin stability would strengthen the moat.

Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 4 years of fundamental data.

Forensic Accounting

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CNC
-3.03
Unlikely Manipulator
Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone

M-Score Trend

Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.
UNH
-2.45
Unlikely Manipulator
Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone

M-Score Trend

Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.

Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.

Ownership Breakdown

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CNC
Insiders 0.7%Institutions 98.3%Retail & Other 1.0%
No. of Institutional Holders1,282
High insider ownership aligns management incentives with shareholders — a key signal in Buffett-style analysis. Institutional concentration can indicate smart-money conviction but also crowding risk.
UNH
Insiders 0.8%Institutions 84.2%Retail & Other 14.9%
No. of Institutional Holders4,244
High insider ownership aligns management incentives with shareholders — a key signal in Buffett-style analysis. Institutional concentration can indicate smart-money conviction but also crowding risk.

High insider ownership aligns management incentives with shareholders. Institutional concentration can indicate smart-money conviction but also crowding risk.

Insider Buying Activity

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CNC
0
Buys (3M)
2
Buys (12M)
Total value (12M): $738,945
LONDON SARAH M.
Chief Executive Officer
$490,365
@ $25.50 · 2025-08-08
SAMUELS THEODORE R II
Director
$248,580
@ $27.62 · 2025-07-28
GRECO THOMAS R
Director
$1.02M
@ $59.75 · 2024-12-18
COUGHLIN CHRISTOPHER J
Director
$594,400
@ $59.44 · 2024-12-16
DALLAS HIRAM JAMES
Director
$99,904
@ $59.01 · 2024-12-16
BLUME JESSICA L
Director
$14,870
@ $59.48 · 2024-12-16
SAMUELS THEODORE R II
Director
$294,300
@ $58.86 · 2024-12-13
ASHER ANDREW LYNN
Chief Financial Officer
$1.00M
@ $58.14 · 2024-11-13
LONDON SARAH M.
Chief Executive Officer
$250,314
@ $60.80 · 2024-11-08
Open market purchases · includes direct & indirect ownership · excludes option exercises
UNH
0
Buys (3M)
5
Buys (12M)
Total value (12M): $31.61M
REX JOHN F
President
$5.00M
@ $291.12 · 2025-05-16
HEMSLEY STEPHEN J
Chief Executive Officer
$25.02M
@ $288.57 · 2025-05-16
GIL KRISTEN
Director
$1.00M
@ $271.17 · 2025-05-15
FLYNN TIMOTHY PATRICK
Director
$491,786
@ $320.80 · 2025-05-14
NOSEWORTHY JOHN H
Director
$93,647
@ $312.16 · 2025-05-14
FLYNN TIMOTHY PATRICK
Director
$511,575
@ $511.57 · 2025-01-17
Open market purchases · includes direct & indirect ownership · excludes option exercises

Open market purchases · includes direct & indirect ownership · excludes option exercises.

Insider Selling Activity

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CNC
0
Sells (3M)
1
Sells (12M)
Total value (12M): $2.58M
BURDICK KENNETH A
Director
$2.58M
@ $39.02 · 2025-12-04
FASOLA KENNETH J
President
$620,960
@ $77.62 · 2024-05-13
Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives
UNH
0
Sells (3M)
1
Sells (12M)
Total value (12M): $179,645
CONWAY PATRICK HUGH M.D.
Chief Executive Officer
$179,645
@ $305.00 · 2025-06-10
MCSWEENEY ERIN L
Officer
$438,987
@ $626.23 · 2024-11-11
Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives

Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives.

🎭 Mr. Market's Mood

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CNC
FearGreed
😨Fear(28/100)

"Market is pessimistic — investigate whether fears are temporary or structural"

Composite sentiment score based on 6 market signals. Inspired by Buffett's "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.
UNH
FearGreed
😨Fear(37/100)

"Market is pessimistic — investigate whether fears are temporary or structural"

Composite sentiment score based on 6 market signals. Inspired by Buffett's "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.

Composite sentiment score based on market signals. Inspired by Buffett’s "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.

⚖️ Buffett Signal

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CNC
⚪Awaiting DCF Data

The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.

DCF Margin of Safety: N/AMr. Market's Mood: Fear (28)
UNH
⚪Awaiting DCF Data

The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.

DCF Margin of Safety: N/AMr. Market's Mood: Fear (37)
View CNC Full AnalysisView UNH Full Analysis