Humana Inc (HUM)vsUnitedHealth Group Incorporated (UNH)
HUM
Humana Inc
$350.08
+0.08%
HEALTHCARE · Cap: $45.53B
UNH
UnitedHealth Group Incorporated
$399.47
+0.36%
HEALTHCARE · Cap: $373.28B
Smart Verdict
WallStSmart Research — data-driven comparison
UnitedHealth Group Incorporated generates 228% more annual revenue ($449.71B vs $137.20B). UNH leads profitability with a 2.7% profit margin vs 0.8%. UNH appears more attractively valued with a PEG of 1.42. UNH earns a higher WallStSmart Score of 54/100 (C-).
HUM
Buy52
out of 100
Grade: C-
UNH
Buy54
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+23.7%
Fair Value
$403.67
Current Price
$350.08
$53.59 discount
Margin of Safety
-26.9%
Fair Value
$321.13
Current Price
$399.47
$78.34 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
Generating 8.1B in free cash flow
Areas to Watch
Expensive relative to growth rate
ROE of 6.1% — below average capital efficiency
0.8% margin — thin
Operating margin of 4.7%
Premium valuation, high expectations priced in
2.0% revenue growth
0.7% earnings growth
2.7% margin — thin
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 : UNH
The strongest argument for UNH centers on Market Cap, Free Cash Flow. PEG of 1.42 suggests the stock is reasonably priced for its growth.
Bear Case : HUM
The primary concerns for HUM are PEG Ratio, Return on Equity, Profit Margin. A P/E of 40.5x leaves little room for execution misses. Thin 0.8% margins leave little buffer for downturns.
Bear Case : UNH
The primary concerns for UNH are P/E Ratio, Revenue Growth, EPS Growth. Thin 2.7% margins leave little buffer for downturns.
Key Dynamics to Monitor
HUM profiles as a growth stock while UNH is a value play — different risk/reward profiles.
HUM carries more volatility with a beta of 0.77 — expect wider price swings.
HUM is growing revenue faster at 23.5% — sustainability is the question.
UNH generates stronger free cash flow (8.1B), providing more financial flexibility.
Bottom Line
UNH scores higher overall (54/100 vs 52/100). HUM offers better value entry with a 23.7% 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 →UnitedHealth Group Incorporated
HEALTHCARE · HEALTHCARE PLANS · USA
UnitedHealth Group Incorporated is an American for-profit multinational managed healthcare and insurance company based in Minnetonka, Minnesota. It offers health care products and insurance services. In 2020, it was the second-largest healthcare company (behind CVS Health) by revenue with $257.1 billion, and the largest insurance company by net premiums. UnitedHealthcare revenues comprise 80% of the Group's overall revenue.
Visit Website →Compare with Other HEALTHCARE PLANS Stocks
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