WallStSmart

Humana Inc (HUM)vsThe Coca-Cola Company (KO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Humana Inc generates 178% more annual revenue ($137.20B vs $49.28B). KO leads profitability with a 27.8% profit margin vs 0.8%. HUM appears more attractively valued with a PEG of 1.33. KO earns a higher WallStSmart Score of 65/100 (B-).

HUM

Buy

59

out of 100

Grade: C

Growth: 6.0Profit: 4.5Value: 7.3Quality: 7.5
Piotroski: 4/9Altman Z: 4.37

KO

Strong Buy

65

out of 100

Grade: B-

Growth: 6.0Profit: 9.5Value: 3.3Quality: 6.0
Piotroski: 6/9Altman Z: 2.49
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

HUMUndervalued (+81.0%)

Margin of Safety

+81.0%

Fair Value

$1141.73

Current Price

$246.33

$895.40 discount

UndervaluedFair: $1141.73Overvalued
KOSignificantly Overvalued (-22.3%)

Margin of Safety

-22.3%

Fair Value

$64.18

Current Price

$79.23

$15.05 premium

UndervaluedFair: $64.18Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HUM4 strengths · Avg: 8.5/10
Altman Z-ScoreHealth
4.3710/10

Safe zone — low bankruptcy risk

Price/BookValuation
1.7x8/10

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

KO5 strengths · Avg: 9.4/10
Market CapQuality
$336.45B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
43.4%10/10

Every $100 of equity generates 43 in profit

Operating MarginProfitability
35.1%10/10

Strong operational efficiency at 35.1%

Profit MarginProfitability
27.8%9/10

Keeps 28 of every $100 in revenue as profit

Free Cash FlowQuality
$1.75B8/10

Generating 1.8B in free cash flow

Areas to Watch

HUM4 concerns · Avg: 2.8/10
Return on EquityProfitability
6.3%3/10

ROE of 6.3% — 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%

EPS GrowthGrowth
-4.6%2/10

Earnings declined 4.6%

KO3 concerns · Avg: 3.0/10
Price/BookValuation
10.1x4/10

Trading at 10.1x book value

Debt/EquityHealth
1.413/10

Elevated debt levels

PEG RatioValuation
4.032/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

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. PEG of 1.33 suggests the stock is reasonably priced for its growth.

Bull Case : KO

The strongest argument for KO centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 27.8% and operating margin at 35.1%. Revenue growth of 12.1% demonstrates continued momentum.

Bear Case : HUM

The primary concerns for HUM are Return on Equity, Profit Margin, Operating Margin. Thin 0.8% margins leave little buffer for downturns.

Bear Case : KO

The primary concerns for KO are Price/Book, Debt/Equity, PEG Ratio.

Key Dynamics to Monitor

HUM profiles as a growth stock while KO is a mature play — different risk/reward profiles.

HUM carries more volatility with a beta of 0.45 — expect wider price swings.

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

KO generates stronger free cash flow (1.8B), providing more financial flexibility.

Bottom Line

KO scores higher overall (65/100 vs 59/100), backed by strong 27.8% margins and 12.1% revenue growth. HUM offers better value entry with a 81.0% margin of safety. 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.

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The Coca-Cola Company

CONSUMER DEFENSIVE · BEVERAGES - NON-ALCOHOLIC · USA

The Coca-Cola Company is an American multinational beverage corporation incorporated under Delaware's General Corporation Law and headquartered in Atlanta, Georgia. The Coca-Cola Company has interests in the manufacturing, retailing, and marketing of nonalcoholic beverage concentrates and syrups.

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