WallStSmart

Humana Inc (HUM)vsYum! Brands Inc (YUM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Humana Inc generates 1517% more annual revenue ($137.20B vs $8.49B). YUM leads profitability with a 20.5% profit margin vs 0.8%. HUM appears more attractively valued with a PEG of 1.40. YUM earns a higher WallStSmart Score of 65/100 (C+).

HUM

Buy

59

out of 100

Grade: C

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

YUM

Buy

65

out of 100

Grade: C+

Growth: 8.0Profit: 8.0Value: 4.0Quality: 4.5
Piotroski: 2/9
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
YUMSignificantly Overvalued (-76.3%)

Margin of Safety

-76.3%

Fair Value

$90.20

Current Price

$151.95

$61.75 premium

UndervaluedFair: $90.20Overvalued

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

YUM4 strengths · Avg: 9.3/10
Operating MarginProfitability
31.0%10/10

Strong operational efficiency at 31.0%

EPS GrowthGrowth
72.2%10/10

Earnings expanding 72.2% YoY

Profit MarginProfitability
20.5%9/10

Keeps 21 of every $100 in revenue as profit

Revenue GrowthGrowth
15.2%8/10

15.2% revenue growth

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%

YUM4 concerns · Avg: 3.5/10
PEG RatioValuation
1.934/10

Expensive relative to growth rate

P/E RatioValuation
25.4x4/10

Moderate valuation

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

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 : YUM

The strongest argument for YUM centers on Operating Margin, EPS Growth, Profit Margin. Profitability is solid with margins at 20.5% and operating margin at 31.0%. Revenue growth of 15.2% demonstrates continued momentum.

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 : YUM

The primary concerns for YUM are PEG Ratio, P/E Ratio, Return on Equity.

Key Dynamics to Monitor

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.

HUM generates stronger free cash flow (1.1B), providing more financial flexibility.

Monitor HEALTHCARE PLANS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

YUM scores higher overall (65/100 vs 59/100), backed by strong 20.5% margins and 15.2% revenue growth. 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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Yum! Brands Inc

CONSUMER CYCLICAL · RESTAURANTS · USA

Yum! Brands, Inc. is an American fast food corporation listed on the Fortune 1000. Yum! operates the brands KFC, Pizza Hut, Taco Bell, The Habit Burger Grill, and WingStreet worldwide, except in China, where the brands are operated by a separate company, Yum China.

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