WallStSmart

CVS Health Corp (CVS)vsHumana Inc (HUM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

CVS Health Corp generates 183% more annual revenue ($412.64B vs $145.68B). CVS leads profitability with a 1.2% profit margin vs 0.9%. CVS appears more attractively valued with a PEG of 0.22. CVS earns a higher WallStSmart Score of 67/100 (B-).

CVS

Strong Buy

67

out of 100

Grade: B-

Growth: 7.3Profit: 4.0Value: 8.7Quality: 5.5
Piotroski: 4/9Altman Z: 2.11

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

CVSUndervalued (+45.4%)

Margin of Safety

+45.4%

Fair Value

$141.12

Current Price

$94.66

$46.46 discount

UndervaluedFair: $141.12Overvalued
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

CVS5 strengths · Avg: 9.0/10
PEG RatioValuation
0.2210/10

Growing faster than its price suggests

EPS GrowthGrowth
188.8%10/10

Earnings expanding 188.8% YoY

Market CapQuality
$121.07B9/10

Large-cap with strong market position

Price/BookValuation
1.5x8/10

Reasonable price relative to book value

Free Cash FlowQuality
$5.65B8/10

Generating 5.7B in free cash flow

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

CVS4 concerns · Avg: 3.3/10
P/E RatioValuation
25.1x4/10

Moderate valuation

Return on EquityProfitability
6.2%3/10

ROE of 6.2% — below average capital efficiency

Profit MarginProfitability
1.2%3/10

1.2% margin — thin

Operating MarginProfitability
3.9%3/10

Operating margin of 3.9%

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 : CVS

The strongest argument for CVS centers on PEG Ratio, EPS Growth, Market Cap. PEG of 0.22 suggests the stock is reasonably priced for its growth.

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 : CVS

The primary concerns for CVS are P/E Ratio, Return on Equity, Profit Margin. Thin 1.2% 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

CVS profiles as a value stock while HUM is a growth 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.

CVS generates stronger free cash flow (5.7B), providing more financial flexibility.

Bottom Line

CVS scores higher overall (67/100 vs 60/100). Both earn "Strong 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.

CVS Health Corp

HEALTHCARE · HEALTHCARE PLANS · USA

CVS Health (previously CVS Corporation and CVS Caremark Corporation) is an American healthcare company that owns CVS Pharmacy, a retail pharmacy chain; CVS Caremark, a pharmacy benefits manager; Aetna, a health insurance provider, among many other brands. The company's headquarters is in Woonsocket, Rhode Island.

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Humana Inc

HEALTHCARE · HEALTHCARE PLANS · USA

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

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