Head-To-Head Analysis: Centene (CNC) vs. Trupanion (TRUP)

Centene (NYSE: CNC) and Trupanion (NASDAQ:TRUP) are both medical companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, dividends, risk, institutional ownership, valuation, earnings and analyst recommendations.

Institutional & Insider Ownership

76.4% of Centene shares are held by institutional investors. Comparatively, 87.7% of Trupanion shares are held by institutional investors. 3.0% of Centene shares are held by insiders. Comparatively, 20.7% of Trupanion shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations for Centene and Trupanion, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Centene 0 3 13 0 2.81
Trupanion 0 1 6 0 2.86

Centene currently has a consensus target price of $113.40, indicating a potential downside of 1.72%. Trupanion has a consensus target price of $36.17, indicating a potential upside of 23.18%. Given Trupanion’s stronger consensus rating and higher probable upside, analysts plainly believe Trupanion is more favorable than Centene.

Valuation & Earnings

This table compares Centene and Trupanion’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Centene $48.38 billion 0.49 $828.00 million $5.03 22.94
Trupanion $242.67 million 3.77 -$1.50 million ($0.07) -419.43

Centene has higher revenue and earnings than Trupanion. Trupanion is trading at a lower price-to-earnings ratio than Centene, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Centene and Trupanion’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Centene 2.06% 15.69% 4.75%
Trupanion -0.58% -6.54% -2.98%

Volatility and Risk

Centene has a beta of 0.75, meaning that its stock price is 25% less volatile than the S&P 500. Comparatively, Trupanion has a beta of 0.59, meaning that its stock price is 41% less volatile than the S&P 500.

Summary

Centene beats Trupanion on 8 of the 13 factors compared between the two stocks.

Centene Company Profile

Centene Corporation operates as a diversified and multi-national healthcare enterprise that provides programs and services to under-insured and uninsured individuals in the United States. It operates through two segments, Managed Care and Specialty Services. The Managed Care segment offers health plan coverage to individuals through government subsidized programs, including Medicaid, the State children's health insurance program, long-term care, foster care, and dual eligible individual, as well as aged, blind, or disabled programs. Its health plans include primary and specialty physician care, inpatient and outpatient hospital care, emergency and urgent care, prenatal care, laboratory and X-ray services, home-based primary care, transportation assistance, vision care, dental care, immunizations, prescriptions and limited over-the-counter drugs, specialty pharmacy, therapies, social work services, and care coordination. The Specialty Services segment provides pharmacy benefits management services; health, triage, wellness, and disease management services; vision and dental services; correctional healthcare services; home based primary care services; and integrated long-term care services, as well as care management software that automate the clinical, administrative, and technical components of care management programs. This segment offers its services and products to state programs, correctional facilities, healthcare organizations, employer groups, military service members and their families, and other commercial organizations. The company provides its services through primary and specialty care physicians, hospitals, and ancillary providers. Centene Corporation was founded in 1984 and is headquartered in St. Louis, Missouri.

Trupanion Company Profile

Trupanion, Inc., together with its subsidiaries, provides medical insurance for cats and dogs on monthly subscription basis in the United States, Canada, and Puerto Rico. The company operates through Subscription Business and Other Business segments. It serves pet owners and veterinarians through third-party referrals and online member acquisition channels. The company was formerly known as Vetinsurance International, Inc. changed its name to Trupanion, Inc. in 2013. Trupanion, Inc. was founded in 2000 and is headquartered in Seattle, Washington.

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