WallStSmart

Humana Inc (HUM)vsUnitedHealth Group Incorporated (UNH)

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Smart Verdict

WallStSmart Research — data-driven comparison

UnitedHealth Group Incorporated generates 209% more annual revenue ($450.06B vs $145.68B). UNH leads profitability with a 3.5% profit margin vs 0.9%. UNH appears more attractively valued with a PEG of 1.01. HUM earns a higher WallStSmart Score of 64/100 (C+).

HUM

Buy

64

out of 100

Grade: C+

Growth: 8.0Profit: 4.5Value: 5.3Quality: 7.0
Piotroski: 4/9Altman Z: 3.91

UNH

Buy

62

out of 100

Grade: C+

Growth: 6.7Profit: 6.0Value: 4.7Quality: 5.5
Piotroski: 4/9Altman Z: 2.28
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

HUMUndervalued (+8.2%)

Margin of Safety

+8.2%

Fair Value

$423.98

Current Price

$411.87

$12.11 discount

UndervaluedFair: $423.98Overvalued
UNHSignificantly Overvalued (-25.9%)

Margin of Safety

-25.9%

Fair Value

$326.16

Current Price

$410.39

$84.23 premium

UndervaluedFair: $326.16Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HUM4 strengths · Avg: 8.5/10
Altman Z-ScoreHealth
3.9110/10

Safe zone — low bankruptcy risk

Price/BookValuation
2.6x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
26.2%8/10

Revenue surging 26.2% year-over-year

EPS GrowthGrowth
27.1%8/10

Earnings expanding 27.1% YoY

UNH3 strengths · Avg: 9.3/10
Market CapQuality
$360.32B10/10

Mega-cap, among the largest globally

EPS GrowthGrowth
75.9%10/10

Earnings expanding 75.9% YoY

Free Cash FlowQuality
$4.26B8/10

Generating 4.3B in free cash flow

Areas to Watch

HUM4 concerns · Avg: 3.3/10
P/E RatioValuation
39.0x4/10

Premium valuation, high expectations priced in

Return on EquityProfitability
6.7%3/10

ROE of 6.7% — below average capital efficiency

Profit MarginProfitability
0.9%3/10

0.9% margin — thin

Operating MarginProfitability
3.5%3/10

Operating margin of 3.5%

UNH3 concerns · Avg: 3.0/10
P/E RatioValuation
25.8x4/10

Moderate valuation

Profit MarginProfitability
3.5%3/10

3.5% margin — thin

Revenue GrowthGrowth
-0.4%2/10

Revenue declined 0.4%

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 26.2% demonstrates continued momentum. PEG of 1.25 suggests the stock is reasonably priced for its growth.

Bull Case : UNH

The strongest argument for UNH centers on Market Cap, EPS Growth, Free Cash Flow. PEG of 1.01 suggests the stock is reasonably priced for its growth.

Bear Case : HUM

The primary concerns for HUM are P/E Ratio, Return on Equity, Profit Margin. Thin 0.9% margins leave little buffer for downturns.

Bear Case : UNH

The primary concerns for UNH are P/E Ratio, Profit Margin, Revenue Growth. Thin 3.5% 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 0.74 — expect wider price swings.

HUM is growing revenue faster at 26.2% — sustainability is the question.

UNH generates stronger free cash flow (4.3B), providing more financial flexibility.

Bottom Line

HUM scores higher overall (64/100 vs 62/100) and 26.2% 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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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.

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