WallStSmart

Humana Inc (HUM)vsNovartis AG ADR (NVS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Humana Inc generates 142% more annual revenue ($137.20B vs $56.58B). NVS leads profitability with a 23.9% 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

Buy

57

out of 100

Grade: C

Growth: 6.0Profit: 4.5Value: 6.7Quality: 7.5
Piotroski: 4/9Altman Z: 4.37

NVS

Buy

51

out of 100

Grade: C-

Growth: 3.3Profit: 9.0Value: 3.3Quality: 5.5
Piotroski: 4/9Altman Z: 1.96
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

HUMUndervalued (+80.9%)

Margin of Safety

+80.9%

Fair Value

$1139.79

Current Price

$274.26

$865.53 discount

UndervaluedFair: $1139.79Overvalued
NVSSignificantly Overvalued (-51.8%)

Margin of Safety

-51.8%

Fair Value

$110.12

Current Price

$145.23

$35.11 premium

UndervaluedFair: $110.12Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HUM4 strengths · Avg: 8.5/10
Altman Z-ScoreHealth
4.3710/10

Safe zone — low bankruptcy risk

Price/BookValuation
1.9x8/10

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

NVS5 strengths · Avg: 9.4/10
Market CapQuality
$277.42B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
34.9%10/10

Every $100 of equity generates 35 in profit

Operating MarginProfitability
30.5%10/10

Strong operational efficiency at 30.5%

Profit MarginProfitability
23.9%9/10

Keeps 24 of every $100 in revenue as profit

Free Cash FlowQuality
$2.87B8/10

Generating 2.9B in free cash flow

Areas to Watch

HUM4 concerns · Avg: 3.5/10
PEG RatioValuation
1.564/10

Expensive relative to growth rate

P/E RatioValuation
29.2x4/10

Moderate valuation

Return on EquityProfitability
6.3%3/10

ROE of 6.3% — below average capital efficiency

Profit MarginProfitability
0.8%3/10

0.8% margin — thin

NVS4 concerns · Avg: 2.5/10
Altman Z-ScoreHealth
1.964/10

Grey zone — moderate risk

PEG RatioValuation
2.592/10

Expensive relative to growth rate

Revenue GrowthGrowth
-0.7%2/10

Revenue declined 0.7%

EPS GrowthGrowth
-9.3%2/10

Earnings declined 9.3%

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 : NVS

The strongest argument for NVS centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 23.9% and operating margin at 30.5%.

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 : NVS

The primary concerns for NVS are Altman Z-Score, PEG Ratio, Revenue Growth.

Key Dynamics to Monitor

HUM profiles as a growth stock while NVS is a declining 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.

NVS generates stronger free cash flow (2.9B), providing more financial flexibility.

Bottom Line

HUM scores higher overall (57/100 vs 51/100) and 23.5% revenue growth. 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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Novartis AG ADR

HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA

Novartis AG researches, develops, manufactures and markets medical devices worldwide. The company is headquartered in Basel, Switzerland.

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