Humana Inc (HUM)vsRio Tinto ADR (RIO)
HUM
Humana Inc
$350.08
+0.08%
HEALTHCARE · Cap: $45.53B
RIO
Rio Tinto ADR
$100.69
-4.47%
BASIC MATERIALS · Cap: $168.54B
Smart Verdict
WallStSmart Research — data-driven comparison
Humana Inc generates 138% more annual revenue ($137.20B vs $57.64B). RIO leads profitability with a 17.3% profit margin vs 0.8%. HUM appears more attractively valued with a PEG of 2.15. RIO earns a higher WallStSmart Score of 54/100 (C-).
HUM
Buy52
out of 100
Grade: C-
RIO
Buy54
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+23.7%
Fair Value
$403.67
Current Price
$350.08
$53.59 discount
Margin of Safety
+24.5%
Fair Value
$129.94
Current Price
$100.69
$29.25 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
Every $100 of equity generates 35 in profit
Large-cap with strong market position
Attractively priced relative to earnings
Reasonable price relative to book value
Strong operational efficiency at 25.3%
Generating 2.5B in free cash flow
Areas to Watch
Expensive relative to growth rate
ROE of 6.1% — below average capital efficiency
0.8% margin — thin
Operating margin of 4.7%
Weak financial health signals
Expensive relative to growth rate
Earnings declined 5.6%
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.
Bull Case : RIO
The strongest argument for RIO centers on Return on Equity, Market Cap, P/E Ratio. Profitability is solid with margins at 17.3% and operating margin at 25.3%. Revenue growth of 14.6% 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 : RIO
The primary concerns for RIO are Piotroski F-Score, PEG Ratio, EPS Growth.
Key Dynamics to Monitor
HUM profiles as a growth stock while RIO 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.
RIO generates stronger free cash flow (2.5B), providing more financial flexibility.
Bottom Line
RIO scores higher overall (54/100 vs 52/100), backed by strong 17.3% margins and 14.6% revenue growth. HUM offers better value entry with a 23.7% 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 →Rio Tinto ADR
BASIC MATERIALS · OTHER INDUSTRIAL METALS & MINING · USA
Rio Tinto Group is dedicated to the exploration, extraction and processing of mineral resources worldwide. The company is headquartered in London, the United Kingdom.
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