Humana Inc (HUM)vsMerck & Company Inc (MRK)
HUM
Humana Inc
$365.41
-5.99%
HEALTHCARE · Cap: $47.74B
MRK
Merck & Company Inc
$130.40
-1.11%
HEALTHCARE · Cap: $307.25B
Smart Verdict
WallStSmart Research — data-driven comparison
Humana Inc generates 109% more annual revenue ($137.20B vs $65.77B). MRK leads profitability with a 13.6% profit margin vs 0.0%. HUM appears more attractively valued with a PEG of 2.24. HUM earns a higher WallStSmart Score of 52/100 (C-).
HUM
Buy52
out of 100
Grade: C-
MRK
Hold50
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+0.6%
Fair Value
$402.40
Current Price
$365.41
$36.99 discount
Margin of Safety
-62.3%
Fair Value
$81.23
Current Price
$130.40
$49.17 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Safe zone — low bankruptcy risk
Reasonable price relative to book value
Generating 1.1B in free cash flow
Mega-cap, among the largest globally
Strong operational efficiency at 38.6%
Generating 2.9B in free cash flow
Areas to Watch
Expensive relative to growth rate
0.2% revenue growth
ROE of 6.1% — below average capital efficiency
0.0% margin — thin
Premium valuation, high expectations priced in
4.9% revenue growth
Elevated debt levels
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : HUM
The strongest argument for HUM centers on Altman Z-Score, Price/Book, Free Cash Flow.
Bull Case : MRK
The strongest argument for MRK centers on Market Cap, Operating Margin, Free Cash Flow.
Bear Case : HUM
The primary concerns for HUM are PEG Ratio, Revenue Growth, Return on Equity. A P/E of 41.5x leaves little room for execution misses. Thin 0.0% margins leave little buffer for downturns.
Bear Case : MRK
The primary concerns for MRK are P/E Ratio, Revenue Growth, Debt/Equity.
Key Dynamics to Monitor
HUM carries more volatility with a beta of 0.72 — expect wider price swings.
MRK is growing revenue faster at 4.9% — sustainability is the question.
MRK generates stronger free cash flow (2.9B), providing more financial flexibility.
Monitor HEALTHCARE PLANS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
HUM scores higher overall (52/100 vs 50/100). Both earn "Buy" and "Hold" 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 →Merck & Company Inc
HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA
Merck & Co. is an American multinational pharmaceutical company headquartered in Kenilworth, New Jersey. It is named after the Merck family, which set up Merck Group in Germany in 1668.
Visit Website →Compare with Other HEALTHCARE PLANS Stocks
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