Centene vs Humana

Centene and Humana are two prominent players in the health insurance industry, with both companies offering a wide range of healthcare products and services to consumers. Investors are closely monitoring their stocks as they compete for market share and work to expand their businesses. Centene has shown strong growth in recent years, while Humana has a solid reputation for stability and profitability. Understanding the performance and potential of these two companies' stocks is crucial for investors looking to make informed decisions in the healthcare sector.

Centene or Humana?

When comparing Centene and Humana, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Centene and Humana.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Centene has a dividend yield of -%, while Humana has a dividend yield of 1.37%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Centene reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Humana reports a 5-year dividend growth of 12.10% year and a payout ratio of 25.48%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Centene P/E ratio at 12.85 and Humana's P/E ratio at 18.13. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Centene P/B ratio is 1.33 while Humana's P/B ratio is 1.86.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Centene has seen a 5-year revenue growth of 0.84%, while Humana's is 1.07%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Centene's ROE at 10.71% and Humana's ROE at 10.37%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $68.41 for Centene and $251.24 for Humana. Over the past year, Centene's prices ranged from $63.45 to $81.42, with a yearly change of 28.32%. Humana's prices fluctuated between $213.31 and $530.54, with a yearly change of 148.72%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.