Humana Inc (HUM)vsMerck & Company Inc (MRK)
HUM
Humana Inc
$411.87
-0.72%
HEALTHCARE · Cap: $49.61B
MRK
Merck & Company Inc
$146.35
+3.83%
HEALTHCARE · Cap: $360.08B
Smart Verdict
WallStSmart Research — data-driven comparison
Humana Inc generates 119% more annual revenue ($145.68B vs $66.57B). MRK leads profitability with a 4.8% 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+
MRK
Hold36
out of 100
Grade: F
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
-73.7%
Fair Value
$83.64
Current Price
$146.35
$62.71 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
Generating 4.5B 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%
Trading at 8.6x book value
ROE of 7.6% — below average capital efficiency
4.8% margin — thin
Elevated debt levels
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 : MRK
The strongest argument for MRK centers on Market Cap, Free Cash Flow.
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 : MRK
The primary concerns for MRK are Price/Book, Return on Equity, Profit Margin. A P/E of 115.8x leaves little room for execution misses. Thin 4.8% margins leave little buffer for downturns.
Key Dynamics to Monitor
HUM profiles as a growth stock while MRK is a value 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.
MRK generates stronger free cash flow (4.5B), providing more financial flexibility.
Bottom Line
HUM scores higher overall (64/100 vs 36/100) and 26.2% revenue growth. Both earn "Buy" and "Hold" 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 →Merck & Company Inc
HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA
Merck & Co. is an American multinational pharmaceutical company headquartered in Kenilworth, New Jersey. It is named after the Merck family, which set up Merck Group in Germany in 1668.
Visit Website →Compare with Other HEALTHCARE PLANS Stocks
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