Humana Inc (HUM)vsMcDonald’s Corporation (MCD)
HUM
Humana Inc
$246.33
+2.84%
HEALTHCARE · Cap: $28.05B
MCD
McDonald’s Corporation
$284.10
-0.38%
CONSUMER CYCLICAL · Cap: $201.95B
Smart Verdict
WallStSmart Research — data-driven comparison
Humana Inc generates 410% more annual revenue ($137.20B vs $26.88B). MCD leads profitability with a 31.9% profit margin vs 0.8%. HUM appears more attractively valued with a PEG of 1.33. HUM earns a higher WallStSmart Score of 59/100 (C).
HUM
Buy59
out of 100
Grade: C
MCD
Buy56
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+81.0%
Fair Value
$1141.73
Current Price
$246.33
$895.40 discount
Margin of Safety
-85.2%
Fair Value
$154.01
Current Price
$284.10
$130.09 premium
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
Mega-cap, among the largest globally
Keeps 32 of every $100 in revenue as profit
Strong operational efficiency at 45.1%
Conservative balance sheet, low leverage
Generating 1.6B in free cash flow
Areas to Watch
ROE of 6.3% — below average capital efficiency
0.8% margin — thin
Operating margin of 4.7%
Earnings declined 4.6%
ROE of 0.0% — below average capital efficiency
Weak financial health signals
Expensive relative to growth rate
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 1.33 suggests the stock is reasonably priced for its growth.
Bull Case : MCD
The strongest argument for MCD centers on Market Cap, Profit Margin, Operating Margin. Profitability is solid with margins at 31.9% and operating margin at 45.1%.
Bear Case : HUM
The primary concerns for HUM are Return on Equity, Profit Margin, Operating Margin. Thin 0.8% margins leave little buffer for downturns.
Bear Case : MCD
The primary concerns for MCD are Return on Equity, Piotroski F-Score, PEG Ratio.
Key Dynamics to Monitor
HUM profiles as a growth stock while MCD is a mature play — different risk/reward profiles.
HUM carries more volatility with a beta of 0.45 — expect wider price swings.
HUM is growing revenue faster at 23.5% — sustainability is the question.
MCD generates stronger free cash flow (1.6B), providing more financial flexibility.
Bottom Line
HUM scores higher overall (59/100 vs 56/100) and 23.5% revenue growth. 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 →McDonald’s Corporation
CONSUMER CYCLICAL · RESTAURANTS · USA
McDonald's Corporation is an American fast food company, founded in 1940 as a restaurant operated by Richard and Maurice McDonald, in San Bernardino, California, United States. They rechristened their business as a hamburger stand, and later turned the company into a franchise, with the Golden Arches logo being introduced in 1953 at a location in Phoenix, Arizona.
Visit Website →Compare with Other HEALTHCARE PLANS Stocks
Want to dig deeper into these stocks?