WallStSmart

Alignment Healthcare LLC (ALHC)vsHumana Inc (HUM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Humana Inc generates 3083% more annual revenue ($145.68B vs $4.58B). ALHC leads profitability with a 0.9% profit margin vs 0.9%. HUM trades at a lower P/E of 36.9x. HUM earns a higher WallStSmart Score of 60/100 (C+).

ALHC

Buy

60

out of 100

Grade: C

Growth: 10.0Profit: 5.0Value: 4.3Quality: 6.0
Piotroski: 4/9Altman Z: 2.99

HUM

Buy

60

out of 100

Grade: C+

Growth: 8.0Profit: 4.5Value: 4.7Quality: 7.0
Piotroski: 4/9Altman Z: 3.91
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ALHCUndervalued (+9.4%)

Margin of Safety

+9.4%

Fair Value

$22.51

Current Price

$12.61

$9.90 discount

UndervaluedFair: $22.51Overvalued
HUMUndervalued (+8.5%)

Margin of Safety

+8.5%

Fair Value

$425.30

Current Price

$409.80

$15.50 discount

UndervaluedFair: $425.30Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ALHC2 strengths · Avg: 10.0/10
Revenue GrowthGrowth
31.6%10/10

Revenue surging 31.6% year-over-year

EPS GrowthGrowth
142.9%10/10

Earnings expanding 142.9% YoY

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

Areas to Watch

ALHC4 concerns · Avg: 3.3/10
Price/BookValuation
9.9x4/10

Trading at 9.9x book value

Profit MarginProfitability
0.9%3/10

0.9% margin — thin

Operating MarginProfitability
3.1%3/10

Operating margin of 3.1%

Debt/EquityHealth
1.253/10

Elevated debt levels

HUM4 concerns · Avg: 3.5/10
PEG RatioValuation
2.194/10

Expensive relative to growth rate

P/E RatioValuation
36.9x4/10

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

Comparative Analysis Report

WallStSmart Research

Bull Case : ALHC

The strongest argument for ALHC centers on Revenue Growth, EPS Growth. Revenue growth of 31.6% demonstrates continued momentum.

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.

Bear Case : ALHC

The primary concerns for ALHC are Price/Book, Profit Margin, Operating Margin. A P/E of 71.3x leaves little room for execution misses. Thin 0.9% margins leave little buffer for downturns.

Bear Case : HUM

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

Key Dynamics to Monitor

ALHC profiles as a hypergrowth stock while HUM is a growth play — different risk/reward profiles.

ALHC carries more volatility with a beta of 1.11 — expect wider price swings.

ALHC is growing revenue faster at 31.6% — sustainability is the question.

ALHC generates stronger free cash flow (-25M), providing more financial flexibility.

Bottom Line

ALHC scores higher overall (60/100 vs 60/100) and 31.6% 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.

Alignment Healthcare LLC

HEALTHCARE · HEALTHCARE PLANS · USA

Alignment Healthcare, Inc. provides a consumer-centric platform that provides personalized healthcare to seniors in the United States. The company is headquartered in Orange, California.

Humana Inc

HEALTHCARE · HEALTHCARE PLANS · USA

Humana Inc. is a for-profit American health insurance company based in Louisville, Kentucky.

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