Humana Inc (HUM)vsMicrosoft Corporation (MSFT)
HUM
Humana Inc
$246.33
+2.84%
HEALTHCARE · Cap: $28.05B
MSFT
Microsoft Corporation
$413.96
+0.63%
TECHNOLOGY · Cap: $3.07T
Smart Verdict
WallStSmart Research — data-driven comparison
Microsoft Corporation generates 132% more annual revenue ($318.27B vs $137.20B). MSFT leads profitability with a 39.3% profit margin vs 0.8%. MSFT appears more attractively valued with a PEG of 1.29. MSFT earns a higher WallStSmart Score of 72/100 (B).
HUM
Buy59
out of 100
Grade: C
MSFT
Strong Buy72
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+81.0%
Fair Value
$1141.73
Current Price
$246.33
$895.40 discount
Margin of Safety
-72.4%
Fair Value
$240.06
Current Price
$413.96
$173.90 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
Every $100 of equity generates 34 in profit
Keeps 39 of every $100 in revenue as profit
Strong operational efficiency at 46.3%
Generating 15.8B in free cash flow
18.3% revenue growth
Areas to Watch
ROE of 6.3% — below average capital efficiency
0.8% margin — thin
Operating margin of 4.7%
Earnings declined 4.6%
No major concerns identified
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. PEG of 1.33 suggests the stock is reasonably priced for its growth.
Bull Case : MSFT
The strongest argument for MSFT centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 39.3% and operating margin at 46.3%. Revenue growth of 18.3% demonstrates continued momentum.
Bear Case : HUM
The primary concerns for HUM are Return on Equity, Profit Margin, Operating Margin. Thin 0.8% margins leave little buffer for downturns.
Bear Case : MSFT
No major red flags identified for MSFT, but monitor valuation.
Key Dynamics to Monitor
MSFT 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.
MSFT generates stronger free cash flow (15.8B), providing more financial flexibility.
Monitor HEALTHCARE PLANS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
MSFT scores higher overall (72/100 vs 59/100), backed by strong 39.3% margins and 18.3% revenue growth. HUM offers better value entry with a 81.0% margin of safety. Both earn "Strong 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 →Microsoft Corporation
TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA
Microsoft Corporation is an American multinational technology company which produces computer software, consumer electronics, personal computers, and related services. Its best known software products are the Microsoft Windows line of operating systems, the Microsoft Office suite, and the Internet Explorer and Edge web browsers. Its flagship hardware products are the Xbox video game consoles and the Microsoft Surface lineup of touchscreen personal computers. Microsoft ranked No. 21 in the 2020 Fortune 500 rankings of the largest United States corporations by total revenue; it was the world's largest software maker by revenue as of 2016. It is considered one of the Big Five companies in the U.S. information technology industry, along with Google, Apple, Amazon, and Facebook.
Visit Website →Compare with Other HEALTHCARE PLANS Stocks
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