WallStSmart

Humana Inc (HUM)vsUnion Pacific Corporation (UNP)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Humana Inc generates 455% more annual revenue ($137.20B vs $24.70B). UNP leads profitability with a 29.2% profit margin vs 0.8%. HUM appears more attractively valued with a PEG of 1.40. UNP earns a higher WallStSmart Score of 60/100 (C).

HUM

Buy

59

out of 100

Grade: C

Growth: 6.0Profit: 4.5Value: 7.3Quality: 7.5
Piotroski: 4/9Altman Z: 4.37

UNP

Buy

60

out of 100

Grade: C

Growth: 4.0Profit: 9.5Value: 3.3Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

HUMUndervalued (+80.9%)

Margin of Safety

+80.9%

Fair Value

$1140.69

Current Price

$274.96

$865.73 discount

UndervaluedFair: $1140.69Overvalued
UNPSignificantly Overvalued (-76.6%)

Margin of Safety

-76.6%

Fair Value

$150.01

Current Price

$264.65

$114.64 premium

UndervaluedFair: $150.01Overvalued

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

UNP5 strengths · Avg: 9.2/10
Return on EquityProfitability
40.7%10/10

Every $100 of equity generates 41 in profit

Operating MarginProfitability
40.4%10/10

Strong operational efficiency at 40.4%

Market CapQuality
$157.27B9/10

Large-cap with strong market position

Profit MarginProfitability
29.2%9/10

Keeps 29 of every $100 in revenue as profit

Free Cash FlowQuality
$1.50B8/10

Generating 1.5B in free cash flow

Areas to Watch

HUM4 concerns · Avg: 3.3/10
P/E RatioValuation
26.4x4/10

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

Operating MarginProfitability
4.7%3/10

Operating margin of 4.7%

UNP3 concerns · Avg: 3.3/10
Price/BookValuation
8.5x4/10

Trading at 8.5x book value

Revenue GrowthGrowth
3.2%4/10

3.2% revenue growth

PEG RatioValuation
3.302/10

Expensive relative to growth rate

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. PEG of 1.40 suggests the stock is reasonably priced for its growth.

Bull Case : UNP

The strongest argument for UNP centers on Return on Equity, Operating Margin, Market Cap. Profitability is solid with margins at 29.2% and operating margin at 40.4%.

Bear Case : HUM

The primary concerns for HUM are P/E Ratio, Return on Equity, Profit Margin. Thin 0.8% margins leave little buffer for downturns.

Bear Case : UNP

The primary concerns for UNP are Price/Book, Revenue Growth, PEG Ratio.

Key Dynamics to Monitor

HUM profiles as a growth stock while UNP is a value play — different risk/reward profiles.

UNP carries more volatility with a beta of 0.99 — expect wider price swings.

HUM is growing revenue faster at 23.5% — sustainability is the question.

UNP generates stronger free cash flow (1.5B), providing more financial flexibility.

Bottom Line

UNP scores higher overall (60/100 vs 59/100), backed by strong 29.2% margins. HUM offers better value entry with a 80.9% 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.

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Union Pacific Corporation

INDUSTRIALS · RAILROADS · USA

The Union Pacific Corporation (Union Pacific) is a publicly traded railroad holding company. It was incorporated in Utah in 1969 and is headquartered in Omaha, Nebraska. It is the parent company of the current, Delaware-registered, form of the Union Pacific Railroad.

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