Humana Inc (HUM)vsPepsiCo Inc (PEP)
HUM
Humana Inc
$246.33
+2.84%
HEALTHCARE · Cap: $28.05B
PEP
PepsiCo Inc
$155.96
+0.59%
CONSUMER DEFENSIVE · Cap: $215.17B
Smart Verdict
WallStSmart Research — data-driven comparison
Humana Inc generates 44% more annual revenue ($137.20B vs $95.45B). PEP leads profitability with a 9.2% profit margin vs 0.8%. HUM appears more attractively valued with a PEG of 1.33. PEP earns a higher WallStSmart Score of 63/100 (C+).
HUM
Buy59
out of 100
Grade: C
PEP
Buy63
out of 100
Grade: C+
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
-0.1%
Fair Value
$154.81
Current Price
$155.96
$1.15 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 44 in profit
Earnings expanding 27.8% YoY
Areas to Watch
ROE of 6.3% — below average capital efficiency
0.8% margin — thin
Operating margin of 4.7%
Earnings declined 4.6%
Expensive relative to growth rate
Trading at 10.0x book value
Weak financial health signals
Negative free cash flow — burning cash
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 : PEP
The strongest argument for PEP centers on Market Cap, Return on Equity, EPS Growth.
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 : PEP
The primary concerns for PEP are PEG Ratio, Price/Book, Piotroski F-Score.
Key Dynamics to Monitor
HUM profiles as a growth stock while PEP is a value play — different risk/reward profiles.
HUM carries more volatility with a beta of 0.45 — expect wider price swings.
HUM is growing revenue faster at 23.5% — sustainability is the question.
HUM generates stronger free cash flow (1.1B), providing more financial flexibility.
Bottom Line
PEP scores higher overall (63/100 vs 59/100). HUM offers better value entry with a 81.0% margin of safety. 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 →PepsiCo Inc
CONSUMER DEFENSIVE · BEVERAGES - NON-ALCOHOLIC · USA
PepsiCo, Inc. is an American based multinational food, snack, and beverage corporation headquartered in Harrison, New York, in the hamlet of Purchase. PepsiCo's business encompasses all aspects of the food and beverage market. It oversees the manufacturing, distribution, and marketing of its products.
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