Humana Inc (HUM)vsLithia Motors Inc (LAD)
HUM
Humana Inc
$274.96
+11.27%
HEALTHCARE · Cap: $29.67B
LAD
Lithia Motors Inc
$293.99
+0.99%
CONSUMER CYCLICAL · Cap: $6.64B
Smart Verdict
WallStSmart Research — data-driven comparison
Humana Inc generates 264% more annual revenue ($137.20B vs $37.73B). LAD leads profitability with a 1.9% profit margin vs 0.8%. LAD appears more attractively valued with a PEG of 0.64. HUM earns a higher WallStSmart Score of 59/100 (C).
HUM
Buy59
out of 100
Grade: C
LAD
Buy55
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+80.9%
Fair Value
$1140.69
Current Price
$274.96
$865.73 discount
Margin of Safety
+53.9%
Fair Value
$694.31
Current Price
$293.99
$400.32 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
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
Attractively priced relative to earnings
Reasonable price relative to book value
Growing faster than its price suggests
Areas to Watch
Moderate valuation
ROE of 6.3% — below average capital efficiency
0.8% margin — thin
Operating margin of 4.7%
1.0% revenue growth
1.9% margin — thin
Operating margin of 3.6%
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull 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 : LAD
The strongest argument for LAD centers on P/E Ratio, Price/Book, PEG Ratio. PEG of 0.64 suggests the stock is reasonably priced for its growth.
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 : LAD
The primary concerns for LAD are Revenue Growth, Profit Margin, Operating Margin. Thin 1.9% margins leave little buffer for downturns.
Key Dynamics to Monitor
HUM profiles as a growth stock while LAD is a value play — different risk/reward profiles.
LAD carries more volatility with a beta of 1.28 — 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
HUM scores higher overall (59/100 vs 55/100) and 23.5% revenue growth. LAD offers better value entry with a 53.9% 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.
Visit Website →Lithia Motors Inc
CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA
Lithia Motors, Inc. is an automobile retailer in the United States. The company is headquartered in Medford, Oregon.
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