Humana Inc (HUM)vsMerck & Company Inc (MRK)
HUM
Humana Inc
$274.26
-0.25%
HEALTHCARE · Cap: $32.93B
MRK
Merck & Company Inc
$111.28
-0.09%
HEALTHCARE · Cap: $280.20B
Smart Verdict
WallStSmart Research — data-driven comparison
Humana Inc generates 109% more annual revenue ($137.20B vs $65.77B). MRK leads profitability with a 13.6% profit margin vs 0.8%. HUM appears more attractively valued with a PEG of 1.56. HUM earns a higher WallStSmart Score of 57/100 (C).
HUM
Buy57
out of 100
Grade: C
MRK
Hold50
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+80.9%
Fair Value
$1139.79
Current Price
$274.26
$865.53 discount
Margin of Safety
-15.9%
Fair Value
$97.84
Current Price
$111.28
$13.44 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Safe zone — low bankruptcy risk
Reasonable price relative to book value
Revenue surging 23.5% year-over-year
Generating 1.1B in free cash flow
Mega-cap, among the largest globally
Strong operational efficiency at 38.6%
Generating 2.9B in free cash flow
Areas to Watch
Expensive relative to growth rate
Moderate valuation
ROE of 6.3% — below average capital efficiency
0.8% margin — thin
Premium valuation, high expectations priced in
4.9% revenue growth
Weak financial health signals
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull 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 : MRK
The strongest argument for MRK centers on Market Cap, Operating Margin, Free Cash Flow.
Bear Case : HUM
The primary concerns for HUM are PEG Ratio, P/E Ratio, Return on Equity. Thin 0.8% margins leave little buffer for downturns.
Bear Case : MRK
The primary concerns for MRK are P/E Ratio, Revenue Growth, Piotroski F-Score.
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 0.68 — expect wider price swings.
HUM is growing revenue faster at 23.5% — sustainability is the question.
MRK generates stronger free cash flow (2.9B), providing more financial flexibility.
Bottom Line
HUM scores higher overall (57/100 vs 50/100) and 23.5% 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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