WallStSmart

Ambev SA ADR (ABEV)vsHumana Inc (HUM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Humana Inc generates 56% more annual revenue ($137.20B vs $88.21B). ABEV leads profitability with a 17.7% profit margin vs 0.8%. HUM appears more attractively valued with a PEG of 2.15. ABEV earns a higher WallStSmart Score of 57/100 (C).

ABEV

Buy

57

out of 100

Grade: C

Growth: 3.3Profit: 8.5Value: 7.3Quality: 7.5
Piotroski: 6/9Altman Z: 2.14

HUM

Buy

52

out of 100

Grade: C-

Growth: 6.0Profit: 4.5Value: 5.3Quality: 6.5
Piotroski: 4/9Altman Z: 3.91
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ABEVUndervalued (+71.0%)

Margin of Safety

+71.0%

Fair Value

$10.53

Current Price

$3.12

$7.41 discount

UndervaluedFair: $10.53Overvalued
HUMUndervalued (+23.7%)

Margin of Safety

+23.7%

Fair Value

$403.67

Current Price

$350.08

$53.59 discount

UndervaluedFair: $403.67Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ABEV5 strengths · Avg: 8.4/10
Debt/EquityHealth
0.0310/10

Conservative balance sheet, low leverage

P/E RatioValuation
16.4x8/10

Attractively priced relative to earnings

Price/BookValuation
2.8x8/10

Reasonable price relative to book value

Operating MarginProfitability
26.2%8/10

Strong operational efficiency at 26.2%

Free Cash FlowQuality
$2.69B8/10

Generating 2.7B in free cash flow

HUM4 strengths · Avg: 8.5/10
Altman Z-ScoreHealth
3.9110/10

Safe zone — low bankruptcy risk

Price/BookValuation
2.3x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
23.5%8/10

Revenue surging 23.5% year-over-year

Free Cash FlowQuality
$1.13B8/10

Generating 1.1B in free cash flow

Areas to Watch

ABEV3 concerns · Avg: 3.3/10
PEG RatioValuation
2.234/10

Expensive relative to growth rate

EPS GrowthGrowth
2.4%4/10

2.4% earnings growth

Revenue GrowthGrowth
-0.1%2/10

Revenue declined 0.1%

HUM4 concerns · Avg: 3.3/10
PEG RatioValuation
2.154/10

Expensive relative to growth rate

Return on EquityProfitability
6.1%3/10

ROE of 6.1% — below average capital efficiency

Profit MarginProfitability
0.8%3/10

0.8% margin — thin

Operating MarginProfitability
4.7%3/10

Operating margin of 4.7%

Comparative Analysis Report

WallStSmart Research

Bull Case : ABEV

The strongest argument for ABEV centers on Debt/Equity, P/E Ratio, Price/Book. Profitability is solid with margins at 17.7% and operating margin at 26.2%.

Bull Case : HUM

The strongest argument for HUM centers on Altman Z-Score, Price/Book, Revenue Growth. Revenue growth of 23.5% demonstrates continued momentum.

Bear Case : ABEV

The primary concerns for ABEV are PEG Ratio, EPS Growth, Revenue Growth.

Bear Case : HUM

The primary concerns for HUM are PEG Ratio, Return on Equity, Profit Margin. A P/E of 40.5x leaves little room for execution misses. Thin 0.8% margins leave little buffer for downturns.

Key Dynamics to Monitor

ABEV profiles as a declining stock while HUM is a growth play — different risk/reward profiles.

HUM carries more volatility with a beta of 0.77 — expect wider price swings.

HUM is growing revenue faster at 23.5% — sustainability is the question.

ABEV generates stronger free cash flow (2.7B), providing more financial flexibility.

Bottom Line

ABEV scores higher overall (57/100 vs 52/100), backed by strong 17.7% margins. HUM offers better value entry with a 23.7% margin of safety. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Ambev SA ADR

CONSUMER DEFENSIVE · BEVERAGES - BREWERS · USA

Ambev SA produces, distributes and sells beer, draft beer, carbonated soft drinks (CSD), other non-alcoholic beverages, malt and food products in the Americas. The company is headquartered in So Paulo, Brazil.

Humana Inc

HEALTHCARE · HEALTHCARE PLANS · USA

Humana Inc. is a for-profit American health insurance company based in Louisville, Kentucky.

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