WallStSmart

Humana Inc (HUM)vs3M Company (MMM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Humana Inc generates 448% more annual revenue ($137.20B vs $25.02B). MMM leads profitability with a 11.1% profit margin vs 0.8%. MMM appears more attractively valued with a PEG of 1.68. MMM earns a higher WallStSmart Score of 56/100 (C).

HUM

Buy

52

out of 100

Grade: C-

Growth: 6.0Profit: 4.5Value: 5.3Quality: 6.5
Piotroski: 4/9Altman Z: 3.91

MMM

Buy

56

out of 100

Grade: C

Growth: 2.7Profit: 8.0Value: 3.3Quality: 5.5
Piotroski: 5/9Altman Z: 2.82
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

HUMUndervalued (+23.7%)

Margin of Safety

+23.7%

Fair Value

$403.67

Current Price

$350.08

$53.59 discount

UndervaluedFair: $403.67Overvalued
MMMSignificantly Overvalued (-51.4%)

Margin of Safety

-51.4%

Fair Value

$114.14

Current Price

$153.76

$39.62 premium

UndervaluedFair: $114.14Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HUM4 strengths · Avg: 8.5/10
Altman Z-ScoreHealth
3.9110/10

Safe zone — low bankruptcy risk

Price/BookValuation
2.3x8/10

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

MMM3 strengths · Avg: 9.0/10
Return on EquityProfitability
85.4%10/10

Every $100 of equity generates 85 in profit

Market CapQuality
$82.53B9/10

Large-cap with strong market position

Operating MarginProfitability
23.3%8/10

Strong operational efficiency at 23.3%

Areas to Watch

HUM4 concerns · Avg: 3.3/10
PEG RatioValuation
2.154/10

Expensive relative to growth rate

Return on EquityProfitability
6.1%3/10

ROE of 6.1% — 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%

MMM4 concerns · Avg: 3.5/10
PEG RatioValuation
1.684/10

Expensive relative to growth rate

P/E RatioValuation
30.5x4/10

Premium valuation, high expectations priced in

Revenue GrowthGrowth
1.3%4/10

1.3% revenue growth

Price/BookValuation
24.6x2/10

Trading at 24.6x book value

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.

Bull Case : MMM

The strongest argument for MMM centers on Return on Equity, Market Cap, Operating Margin.

Bear Case : HUM

The primary concerns for HUM are PEG Ratio, Return on Equity, Profit Margin. A P/E of 40.5x leaves little room for execution misses. Thin 0.8% margins leave little buffer for downturns.

Bear Case : MMM

The primary concerns for MMM are PEG Ratio, P/E Ratio, Revenue Growth. Debt-to-equity of 3.85 is elevated, increasing financial risk.

Key Dynamics to Monitor

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

MMM carries more volatility with a beta of 1.09 — expect wider price swings.

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

HUM generates stronger free cash flow (1.1B), providing more financial flexibility.

Bottom Line

MMM scores higher overall (56/100 vs 52/100). HUM offers better value entry with a 23.7% 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.

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3M Company

INDUSTRIALS · CONGLOMERATES · USA

The 3M Company is an American multinational conglomerate corporation operating in the fields of industry, worker safety, US health care, and consumer goods. The company produces over 60,000 products under several brands, including adhesives, abrasives, laminates, passive fire protection, personal protective equipment, window films, paint protection films, dental and orthodontic products, electrical and electronic connecting and insulating materials, medical products, car-care products, electronic circuits, healthcare software and optical films. It is based in Maplewood, a suburb of Saint Paul, Minnesota.

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