Humana Inc (HUM)vsMerck & Company Inc (MRK)
HUM
Humana Inc
$169.09
-3.45%
HEALTHCARE · Cap: $20.39B
MRK
Merck & Company Inc
$119.63
-1.28%
HEALTHCARE · Cap: $295.77B
Smart Verdict
WallStSmart Research — data-driven comparison
Humana Inc generates 99% more annual revenue ($129.66B vs $65.01B). MRK leads profitability with a 28.1% profit margin vs 0.9%. HUM appears more attractively valued with a PEG of 0.99. MRK earns a higher WallStSmart Score of 59/100 (C).
HUM
Buy58
out of 100
Grade: C
MRK
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-162.1%
Fair Value
$66.91
Current Price
$169.09
$102.18 premium
Margin of Safety
-141.3%
Fair Value
$49.57
Current Price
$119.63
$70.06 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Safe zone — low bankruptcy risk
Growing faster than its price suggests
Attractively priced relative to earnings
Mega-cap, among the largest globally
Every $100 of equity generates 37 in profit
Strong operational efficiency at 32.8%
Keeps 28 of every $100 in revenue as profit
Attractively priced relative to earnings
Generating 1.8B in free cash flow
Areas to Watch
ROE of 7.0% — below average capital efficiency
0.9% margin — thin
Earnings declined 59.3%
Negative free cash flow — burning cash
Weak financial health signals
Expensive relative to growth rate
Earnings declined 19.3%
Comparative Analysis Report
WallStSmart ResearchBull 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 : MRK
The strongest argument for MRK centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 28.1% and operating margin at 32.8%.
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 : MRK
The primary concerns for MRK are Piotroski F-Score, PEG Ratio, EPS Growth.
Key Dynamics to Monitor
HUM carries more volatility with a beta of 0.41 — expect wider price swings.
HUM is growing revenue faster at 11.3% — sustainability is the question.
MRK generates stronger free cash flow (1.8B), providing more financial flexibility.
Monitor HEALTHCARE PLANS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
MRK scores higher overall (59/100 vs 58/100), backed by strong 28.1% margins. 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 →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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