WallStSmart

Diamondback Energy Inc (FANG)vsHumana Inc (HUM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Humana Inc generates 849% more annual revenue ($137.20B vs $14.46B). FANG leads profitability with a 2.0% profit margin vs 0.8%. HUM appears more attractively valued with a PEG of 2.15. HUM earns a higher WallStSmart Score of 52/100 (C-).

FANG

Hold

41

out of 100

Grade: D

Growth: 4.7Profit: 4.0Value: 4.7Quality: 4.5
Piotroski: 2/9Altman Z: 1.28

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

FANGUndervalued (+41.1%)

Margin of Safety

+41.1%

Fair Value

$286.80

Current Price

$192.62

$94.18 discount

UndervaluedFair: $286.80Overvalued
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

FANG2 strengths · Avg: 9.5/10
Price/BookValuation
1.5x10/10

Reasonable price relative to book value

Market CapQuality
$53.44B9/10

Large-cap with strong market position

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

FANG4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
4.2%4/10

4.2% revenue growth

Return on EquityProfitability
1.1%3/10

ROE of 1.1% — below average capital efficiency

Profit MarginProfitability
2.0%3/10

2.0% margin — thin

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

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 : FANG

The strongest argument for FANG centers on Price/Book, Market Cap.

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 : FANG

The primary concerns for FANG are Revenue Growth, Return on Equity, Profit Margin. A P/E of 191.9x leaves little room for execution misses. Thin 2.0% margins leave little buffer for downturns.

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

FANG profiles as a value 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.

HUM generates stronger free cash flow (1.1B), providing more financial flexibility.

Bottom Line

HUM scores higher overall (52/100 vs 41/100) and 23.5% revenue growth. FANG offers better value entry with a 41.1% margin of safety. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

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

Diamondback Energy Inc

ENERGY · OIL & GAS E&P · USA

Diamondback Energy is a company engaged in hydrocarbon exploration and headquartered in Midland, Texas.

Humana Inc

HEALTHCARE · HEALTHCARE PLANS · USA

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

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