WallStSmart

Humana Inc (HUM)vsKinder Morgan Inc (KMI)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Humana Inc generates 683% more annual revenue ($137.20B vs $17.52B). KMI leads profitability with a 18.9% profit margin vs 0.8%. HUM appears more attractively valued with a PEG of 2.15. KMI earns a higher WallStSmart Score of 68/100 (B-).

HUM

Buy

52

out of 100

Grade: C-

Growth: 6.0Profit: 4.5Value: 5.3Quality: 6.5
Piotroski: 4/9Altman Z: 3.91

KMI

Strong Buy

68

out of 100

Grade: B-

Growth: 6.0Profit: 7.5Value: 3.3Quality: 3.5
Piotroski: 5/9Altman Z: 0.70
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

HUMUndervalued (+23.7%)

Margin of Safety

+23.7%

Fair Value

$403.67

Current Price

$350.08

$53.59 discount

UndervaluedFair: $403.67Overvalued
KMISignificantly Overvalued (-44.0%)

Margin of Safety

-44.0%

Fair Value

$21.84

Current Price

$31.71

$9.87 premium

UndervaluedFair: $21.84Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HUM4 strengths · Avg: 8.5/10
Altman Z-ScoreHealth
3.9110/10

Safe zone — low bankruptcy risk

Price/BookValuation
2.3x8/10

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

KMI4 strengths · Avg: 8.3/10
Market CapQuality
$69.99B9/10

Large-cap with strong market position

Price/BookValuation
2.3x8/10

Reasonable price relative to book value

Operating MarginProfitability
29.9%8/10

Strong operational efficiency at 29.9%

EPS GrowthGrowth
36.0%8/10

Earnings expanding 36.0% YoY

Areas to Watch

HUM4 concerns · Avg: 3.3/10
PEG RatioValuation
2.154/10

Expensive relative to growth rate

Return on EquityProfitability
6.1%3/10

ROE of 6.1% — 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%

KMI3 concerns · Avg: 2.3/10
Debt/EquityHealth
1.023/10

Elevated debt levels

PEG RatioValuation
3.812/10

Expensive relative to growth rate

Altman Z-ScoreHealth
0.702/10

Distress zone — elevated risk

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.

Bull Case : KMI

The strongest argument for KMI centers on Market Cap, Price/Book, Operating Margin. Profitability is solid with margins at 18.9% and operating margin at 29.9%. Revenue growth of 13.8% demonstrates continued momentum.

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.

Bear Case : KMI

The primary concerns for KMI are Debt/Equity, PEG Ratio, Altman Z-Score.

Key Dynamics to Monitor

HUM profiles as a growth stock while KMI is a mature 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.

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

Bottom Line

KMI scores higher overall (68/100 vs 52/100), backed by strong 18.9% margins and 13.8% revenue growth. 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.

Humana Inc

HEALTHCARE · HEALTHCARE PLANS · USA

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

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Kinder Morgan Inc

ENERGY · OIL & GAS MIDSTREAM · USA

Kinder Morgan, Inc. is one of the largest energy infrastructure companies in North America. The company specializes in owning and controlling oil and gas pipelines and terminals.

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