Humana Inc (HUM)vsJohnson & Johnson (JNJ)
HUM
Humana Inc
$274.26
-0.25%
HEALTHCARE · Cap: $32.93B
JNJ
Johnson & Johnson
$221.43
+0.05%
HEALTHCARE · Cap: $554.67B
Smart Verdict
WallStSmart Research — data-driven comparison
Humana Inc generates 42% more annual revenue ($137.20B vs $96.36B). JNJ leads profitability with a 21.8% profit margin vs 0.8%. HUM appears more attractively valued with a PEG of 1.56. JNJ earns a higher WallStSmart Score of 59/100 (C).
HUM
Buy57
out of 100
Grade: C
JNJ
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+80.9%
Fair Value
$1139.79
Current Price
$274.26
$865.53 discount
Margin of Safety
-43.1%
Fair Value
$160.99
Current Price
$221.43
$60.44 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Safe zone — low bankruptcy risk
Reasonable price relative to book value
Revenue surging 23.5% year-over-year
Generating 1.1B in free cash flow
Mega-cap, among the largest globally
Every $100 of equity generates 26 in profit
Keeps 22 of every $100 in revenue as profit
Strong operational efficiency at 27.4%
Generating 1.5B in free cash flow
Areas to Watch
Expensive relative to growth rate
Moderate valuation
ROE of 6.3% — below average capital efficiency
0.8% margin — thin
Moderate valuation
Expensive relative to growth rate
Earnings declined 52.9%
Comparative Analysis Report
WallStSmart ResearchBull Case : HUM
The strongest argument for HUM centers on Altman Z-Score, Price/Book, Revenue Growth. Revenue growth of 23.5% demonstrates continued momentum.
Bull Case : JNJ
The strongest argument for JNJ centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 21.8% and operating margin at 27.4%.
Bear Case : HUM
The primary concerns for HUM are PEG Ratio, P/E Ratio, Return on Equity. Thin 0.8% margins leave little buffer for downturns.
Bear Case : JNJ
The primary concerns for JNJ are P/E Ratio, PEG Ratio, EPS Growth.
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 0.68 — expect wider price swings.
HUM is growing revenue faster at 23.5% — sustainability is the question.
JNJ generates stronger free cash flow (1.5B), providing more financial flexibility.
Bottom Line
JNJ scores higher overall (59/100 vs 57/100), backed by strong 21.8% margins. HUM offers better value entry with a 80.9% 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.
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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