Humana Inc (HUM)vsJohnson & Johnson (JNJ)
HUM
Humana Inc
$169.09
-3.45%
HEALTHCARE · Cap: $20.39B
JNJ
Johnson & Johnson
$240.45
+0.85%
HEALTHCARE · Cap: $579.46B
Smart Verdict
WallStSmart Research — data-driven comparison
Humana Inc generates 38% more annual revenue ($129.66B vs $94.19B). JNJ leads profitability with a 28.5% profit margin vs 0.9%. HUM appears more attractively valued with a PEG of 0.99. JNJ earns a higher WallStSmart Score of 71/100 (B).
HUM
Buy58
out of 100
Grade: C
JNJ
Strong Buy71
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-162.1%
Fair Value
$66.91
Current Price
$169.09
$102.18 premium
Margin of Safety
+53.5%
Fair Value
$516.67
Current Price
$240.45
$276.22 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Safe zone — low bankruptcy risk
Growing faster than its price suggests
Attractively priced relative to earnings
Mega-cap, among the largest globally
Every $100 of equity generates 35 in profit
Keeps 29 of every $100 in revenue as profit
Strong operational efficiency at 24.0%
Earnings expanding 48.6% YoY
Generating 5.5B in free cash flow
Areas to Watch
ROE of 7.0% — below average capital efficiency
0.9% margin — thin
Earnings declined 59.3%
Negative free cash flow — burning cash
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : HUM
The strongest argument for HUM centers on Price/Book, Altman Z-Score, PEG Ratio. Revenue growth of 11.3% demonstrates continued momentum. PEG of 0.99 suggests the stock is reasonably priced for its growth.
Bull Case : JNJ
The strongest argument for JNJ centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 28.5% and operating margin at 24.0%.
Bear Case : HUM
The primary concerns for HUM are Return on Equity, Profit Margin, EPS Growth. Thin 0.9% margins leave little buffer for downturns.
Bear Case : JNJ
The primary concerns for JNJ are PEG Ratio.
Key Dynamics to Monitor
HUM profiles as a value stock while JNJ is a mature play — different risk/reward profiles.
HUM carries more volatility with a beta of 0.41 — expect wider price swings.
HUM is growing revenue faster at 11.3% — sustainability is the question.
JNJ generates stronger free cash flow (5.5B), providing more financial flexibility.
Bottom Line
JNJ scores higher overall (71/100 vs 58/100), backed by strong 28.5% margins. Both earn "Strong 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.
Humana Inc
HEALTHCARE · HEALTHCARE PLANS · USA
Humana Inc. is a for-profit American health insurance company based in Louisville, Kentucky.
Visit Website →Johnson & Johnson
HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA
Johnson & Johnson (J&J) is an American multinational corporation founded in 1886 that develops medical devices, pharmaceuticals, and consumer packaged goods. Its common stock is a component of the Dow Jones Industrial Average and the company is ranked No. 36 on the 2021 Fortune 500 list of the largest United States corporations by total revenue. Johnson & Johnson is one of the world's most valuable companies, and is one of only two U.S.-based companies that has a prime credit rating of AAA, higher than that of the United States government.
Visit Website →Compare with Other HEALTHCARE PLANS Stocks
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