Gilead Sciences Inc (GILD)vsHumana Inc (HUM)
GILD
Gilead Sciences Inc
$129.16
-1.35%
HEALTHCARE · Cap: $154.33B
HUM
Humana Inc
$350.08
+0.08%
HEALTHCARE · Cap: $45.53B
Smart Verdict
WallStSmart Research — data-driven comparison
Humana Inc generates 361% more annual revenue ($137.20B vs $29.74B). GILD leads profitability with a 31.0% profit margin vs 0.8%. GILD appears more attractively valued with a PEG of 2.14. GILD earns a higher WallStSmart Score of 68/100 (B-).
GILD
Strong Buy68
out of 100
Grade: B-
HUM
Buy52
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+43.9%
Fair Value
$220.62
Current Price
$129.16
$91.46 discount
Margin of Safety
+23.7%
Fair Value
$403.67
Current Price
$350.08
$53.59 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 39 in profit
Keeps 31 of every $100 in revenue as profit
Strong operational efficiency at 39.3%
Earnings expanding 54.8% YoY
Large-cap with strong market position
Attractively priced relative to earnings
Safe zone — low bankruptcy risk
Reasonable price relative to book value
Revenue surging 23.5% year-over-year
Generating 1.1B in free cash flow
Areas to Watch
Expensive relative to growth rate
4.4% revenue growth
Grey zone — moderate risk
Expensive relative to growth rate
ROE of 6.1% — below average capital efficiency
0.8% margin — thin
Operating margin of 4.7%
Comparative Analysis Report
WallStSmart ResearchBull Case : GILD
The strongest argument for GILD centers on Return on Equity, Profit Margin, Operating Margin. Profitability is solid with margins at 31.0% and operating margin at 39.3%.
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.
Bear Case : GILD
The primary concerns for GILD are PEG Ratio, Revenue Growth, Altman Z-Score.
Bear Case : HUM
The primary concerns for HUM are PEG Ratio, Return on Equity, Profit Margin. A P/E of 40.5x leaves little room for execution misses. Thin 0.8% margins leave little buffer for downturns.
Key Dynamics to Monitor
GILD profiles as a value stock while HUM is a growth play — different risk/reward profiles.
HUM carries more volatility with a beta of 0.77 — expect wider price swings.
HUM is growing revenue faster at 23.5% — sustainability is the question.
GILD generates stronger free cash flow (2.4B), providing more financial flexibility.
Bottom Line
GILD scores higher overall (68/100 vs 52/100), backed by strong 31.0% margins. HUM offers better value entry with a 23.7% margin of safety. 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.
Gilead Sciences Inc
HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA
Gilead Sciences, Inc. is an American biopharmaceutical company headquartered in Foster City, California, that focuses on researching and developing antiviral drugs used in the treatment of HIV, hepatitis B, hepatitis C, and influenza, including Harvoni and Sovaldi.
Humana Inc
HEALTHCARE · HEALTHCARE PLANS · USA
Humana Inc. is a for-profit American health insurance company based in Louisville, Kentucky.
Visit Website →Compare with Other DRUG MANUFACTURERS - GENERAL Stocks
Want to dig deeper into these stocks?