Humana Inc (HUM)vsJohnson & Johnson (JNJ)
HUM
Humana Inc
$411.87
-0.72%
HEALTHCARE · Cap: $49.61B
JNJ
Johnson & Johnson
$271.17
+0.86%
HEALTHCARE · Cap: $615.87B
Smart Verdict
WallStSmart Research — data-driven comparison
Humana Inc generates 47% more annual revenue ($145.68B vs $99.33B). JNJ leads profitability with a 16.2% profit margin vs 0.9%. HUM appears more attractively valued with a PEG of 1.25. HUM earns a higher WallStSmart Score of 64/100 (C+).
HUM
Buy64
out of 100
Grade: C+
JNJ
Buy57
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+8.2%
Fair Value
$423.98
Current Price
$411.87
$12.11 discount
Margin of Safety
-83.0%
Fair Value
$144.12
Current Price
$271.17
$127.05 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Safe zone — low bankruptcy risk
Reasonable price relative to book value
Revenue surging 26.2% year-over-year
Earnings expanding 27.1% YoY
Mega-cap, among the largest globally
Strong operational efficiency at 25.1%
Generating 6.4B in free cash flow
Areas to Watch
Premium valuation, high expectations priced in
ROE of 6.7% — below average capital efficiency
0.9% margin — thin
Operating margin of 3.5%
Premium valuation, high expectations priced in
Weak financial health signals
Expensive relative to growth rate
Earnings declined 96.0%
Comparative Analysis Report
WallStSmart ResearchBull Case : HUM
The strongest argument for HUM centers on Altman Z-Score, Price/Book, Revenue Growth. Revenue growth of 26.2% demonstrates continued momentum. PEG of 1.25 suggests the stock is reasonably priced for its growth.
Bull Case : JNJ
The strongest argument for JNJ centers on Market Cap, Operating Margin, Free Cash Flow. Profitability is solid with margins at 16.2% and operating margin at 25.1%.
Bear Case : HUM
The primary concerns for HUM are P/E Ratio, Return on Equity, Profit Margin. Thin 0.9% margins leave little buffer for downturns.
Bear Case : JNJ
The primary concerns for JNJ are P/E Ratio, Piotroski F-Score, PEG Ratio.
Key Dynamics to Monitor
HUM profiles as a growth stock while JNJ is a mature play — different risk/reward profiles.
HUM carries more volatility with a beta of 0.74 — expect wider price swings.
HUM is growing revenue faster at 26.2% — sustainability is the question.
JNJ generates stronger free cash flow (6.4B), providing more financial flexibility.
Bottom Line
HUM scores higher overall (64/100 vs 57/100) and 26.2% revenue growth. 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.
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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