WallStSmart

Humana Inc (HUM)vsEli Lilly and Company (LLY)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Humana Inc generates 99% more annual revenue ($129.66B vs $65.18B). LLY leads profitability with a 31.7% profit margin vs 0.9%. LLY appears more attractively valued with a PEG of 0.98. LLY earns a higher WallStSmart Score of 80/100 (A-).

HUM

Buy

58

out of 100

Grade: C

Growth: 5.3Profit: 4.0Value: 6.0Quality: 7.5
Piotroski: 4/9Altman Z: 4.37

LLY

Exceptional Buy

80

out of 100

Grade: A-

Growth: 10.0Profit: 10.0Value: 6.7Quality: 6.5
Piotroski: 6/9Altman Z: 2.06
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

HUMSignificantly Overvalued (-162.1%)

Margin of Safety

-162.1%

Fair Value

$66.91

Current Price

$169.09

$102.18 premium

UndervaluedFair: $66.91Overvalued
LLYUndervalued (+18.1%)

Margin of Safety

+18.1%

Fair Value

$1072.66

Current Price

$878.24

$194.42 discount

UndervaluedFair: $1072.66Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HUM4 strengths · Avg: 9.0/10
Price/BookValuation
1.2x10/10

Reasonable price relative to book value

Altman Z-ScoreHealth
4.3710/10

Safe zone — low bankruptcy risk

PEG RatioValuation
0.998/10

Growing faster than its price suggests

P/E RatioValuation
17.2x8/10

Attractively priced relative to earnings

LLY6 strengths · Avg: 10.0/10
Market CapQuality
$786.04B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
101.2%10/10

Every $100 of equity generates 101 in profit

Profit MarginProfitability
31.7%10/10

Keeps 32 of every $100 in revenue as profit

Operating MarginProfitability
44.9%10/10

Strong operational efficiency at 44.9%

Revenue GrowthGrowth
42.6%10/10

Revenue surging 42.6% year-over-year

EPS GrowthGrowth
51.4%10/10

Earnings expanding 51.4% YoY

Areas to Watch

HUM4 concerns · Avg: 2.5/10
Return on EquityProfitability
7.0%3/10

ROE of 7.0% — below average capital efficiency

Profit MarginProfitability
0.9%3/10

0.9% margin — thin

EPS GrowthGrowth
-59.3%2/10

Earnings declined 59.3%

Free Cash FlowQuality
$-1.85B2/10

Negative free cash flow — burning cash

LLY3 concerns · Avg: 3.0/10
P/E RatioValuation
38.3x4/10

Premium valuation, high expectations priced in

Debt/EquityHealth
1.603/10

Elevated debt levels

Price/BookValuation
29.6x2/10

Trading at 29.6x book value

Comparative Analysis Report

WallStSmart Research

Bull 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 : LLY

The strongest argument for LLY centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 31.7% and operating margin at 44.9%. Revenue growth of 42.6% demonstrates continued momentum.

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 : LLY

The primary concerns for LLY are P/E Ratio, Debt/Equity, Price/Book. Debt-to-equity of 1.60 is elevated, increasing financial risk.

Key Dynamics to Monitor

HUM profiles as a value stock while LLY is a growth play — different risk/reward profiles.

LLY carries more volatility with a beta of 0.43 — expect wider price swings.

LLY is growing revenue faster at 42.6% — sustainability is the question.

LLY generates stronger free cash flow (678M), providing more financial flexibility.

Bottom Line

LLY scores higher overall (80/100 vs 58/100), backed by strong 31.7% margins and 42.6% revenue growth. Both earn "Exceptional 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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Eli Lilly and Company

HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA

Eli Lilly and Company is an American pharmaceutical company headquartered in Indianapolis, Indiana, with offices in 18 countries. Its products are sold in approximately 125 countries.

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