WallStSmart

Humana Inc (HUM)vsEli Lilly and Company (LLY)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Humana Inc generates 83% more annual revenue ($145.68B vs $79.67B). LLY leads profitability with a 33.5% profit margin vs 0.9%. LLY appears more attractively valued with a PEG of 1.11. LLY earns a higher WallStSmart Score of 76/100 (B+).

HUM

Buy

60

out of 100

Grade: C+

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

LLY

Strong Buy

76

out of 100

Grade: B+

Growth: 9.3Profit: 10.0Value: 5.0Quality: 6.0
Piotroski: 6/9Altman Z: 2.06
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

HUMUndervalued (+8.5%)

Margin of Safety

+8.5%

Fair Value

$425.30

Current Price

$409.80

$15.50 discount

UndervaluedFair: $425.30Overvalued

Intrinsic value data unavailable for LLY.

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
2.6x8/10

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

LLY6 strengths · Avg: 9.7/10
Market CapQuality
$994.92B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
78.8%10/10

Every $100 of equity generates 79 in profit

Profit MarginProfitability
33.5%10/10

Keeps 34 of every $100 in revenue as profit

Operating MarginProfitability
54.2%10/10

Strong operational efficiency at 54.2%

Revenue GrowthGrowth
47.7%10/10

Revenue surging 47.7% year-over-year

EPS GrowthGrowth
26.2%8/10

Earnings expanding 26.2% YoY

Areas to Watch

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

LLY3 concerns · Avg: 3.0/10
P/E RatioValuation
37.7x4/10

Premium valuation, high expectations priced in

Debt/EquityHealth
1.623/10

Elevated debt levels

Price/BookValuation
29.4x2/10

Trading at 29.4x book value

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 26.2% demonstrates continued momentum.

Bull Case : LLY

The strongest argument for LLY centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 33.5% and operating margin at 54.2%. Revenue growth of 47.7% demonstrates continued momentum.

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.

Bear Case : LLY

The primary concerns for LLY are P/E Ratio, Debt/Equity, Price/Book. Debt-to-equity of 1.62 is elevated, increasing financial risk.

Key Dynamics to Monitor

HUM carries more volatility with a beta of 0.74 — expect wider price swings.

LLY is growing revenue faster at 47.7% — sustainability is the question.

LLY generates stronger free cash flow (7.8B), providing more financial flexibility.

Monitor HEALTHCARE PLANS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

LLY scores higher overall (76/100 vs 60/100), backed by strong 33.5% margins and 47.7% revenue growth. 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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Eli Lilly and Company

HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA

Eli Lilly and Company is an American pharmaceutical company headquartered in Indianapolis, Indiana, with offices in 18 countries. Its products are sold in approximately 125 countries.

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