Centene Corporation (CNC) vs Visa Inc. (V): Which Is the Better Buy in 2026?
As of 2026-09-17, CNC is undervalued at $68, with a DCF intrinsic value of $466 and a margin of safety of 86%. V is overvalued at $370, with an intrinsic value of $316 and a margin of safety of -17%. Of the two, CNC has the wider margin of safety.
Rewards
- ★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.
- ★PEG ratio of 0.84 suggests the stock is undervalued relative to its growth rate — paying less than 1x for each unit of earnings growth.
- ★Visa Inc. has maintained ROIC above 15% for 4 consecutive years, indicating a durable competitive advantage.
- ★Gross margin of 97.7% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
- ★Visa Inc. scores 99/100 on the Economic Moat Score (Wide Moat), with roic consistency as the strongest competitive dimension.
Risks
- ⚠ROIC has declined by 5.5 percentage points over the past 4 years, which may signal competitive erosion.
- ⚠Gross margin of 11.4% is low, suggesting a competitive or commodity-like market with limited pricing power.
- ⚠Insiders have sold $6.9M worth of stock in the past 3 months — significant insider liquidation.
- ⚠FCF yield of 3.0% is below 3%, meaning the market is pricing in substantial future growth to justify the current price.
- ⚠9 insider sales totaling $44.9M with no purchases in the past 3 months — insiders are reducing their exposure.
Key Valuation Metrics
Learn more →Historical Fundamentals
Learn more →Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.
Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.
Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.
$1 Retained Earnings Test
Learn more →> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
> $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
Learn more →Reverse DCF — Market-Implied Growth
Learn more →What growth rate is the market pricing in at $68?
Market below historical growth — potential opportunity.
What growth rate is the market pricing in at $370?
The market implies +15.3% Owner Earnings growth, above historical trends.
Standard FCF implies a demanding +15.1%, reflecting heavy growth investment.
Economic Moat Score
Learn more →Narrow moat with reinvestment efficiency as the key competitive advantage. Improving margin stability would strengthen the moat.
Wide moat with strength across all dimensions. ROIC Consistency is the standout factor.
Forensic Accounting
Learn more →M-Score Trend
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.
Ownership Breakdown
Learn more →High insider ownership aligns management incentives with shareholders. Institutional concentration can indicate smart-money conviction but also crowding risk.
Insider Buying Activity
Learn more →Open market purchases · includes direct & indirect ownership · excludes option exercises.
Insider Selling Activity
Learn more →Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives.
🎭 Mr. Market's Mood
Learn more →"Market is optimistic — be cautious and ensure you have a margin of safety"
"Market is optimistic — be cautious and ensure you have a margin of safety"
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
Learn more →The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.
The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.
Frequently Asked Questions: CNC vs V
Is Centene Corporation or Visa Inc. more undervalued in 2026?▼
Based on our discounted cash flow model, CNC trades at a 85.5% margin of safety (intrinsic value $466 vs. price $68), compared to V's -17.1% margin of safety (intrinsic $316 vs. $370).
Which stock has a wider economic moat, Centene Corporation or Visa Inc.?▼
V scores 99/100 (Wide moat), while CNC scores 41/100 (Narrow moat). The moat score measures competitive advantage durability across ROIC consistency, margin stability, revenue predictability, and reinvestment efficiency.
Is Centene Corporation in financial distress?▼
CNC's Altman Z-Score of 3.0 places it in the Grey zone, signaling elevated bankruptcy risk. V scores 8.1 (Safe zone). The Altman Z-Score is a five-factor model that predicts insolvency within two years; scores below 1.81 indicate significant distress.
Which company has better free cash flow, Centene Corporation or Visa Inc.?▼
Centene Corporation (CNC) generates a 28.9% free cash flow yield, compared to Visa Inc.'s 3.0%. A higher FCF yield means the business converts more of its market value into cash that can be returned to shareholders or reinvested.
Which stock has higher return on invested capital, Centene Corporation or Visa Inc.?▼
V earns 39.4% ROIC versus CNC's 13.8%. A higher ROIC means the company generates more profit per dollar of capital employed, a hallmark of durable competitive advantage in Buffett-style analysis.