Humana Inc (HUM)vsVertex Pharmaceuticals Inc (VRTX)
HUM
Humana Inc
$174.24
+1.17%
HEALTHCARE · Cap: $20.77B
VRTX
Vertex Pharmaceuticals Inc
$454.97
+1.42%
HEALTHCARE · Cap: $113.95B
Smart Verdict
WallStSmart Research — data-driven comparison
Humana Inc generates 980% more annual revenue ($129.66B vs $12.00B). VRTX leads profitability with a 32.9% profit margin vs 0.9%. HUM appears more attractively valued with a PEG of 0.99. VRTX earns a higher WallStSmart Score of 66/100 (B-).
HUM
Buy58
out of 100
Grade: C
VRTX
Strong Buy66
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-162.4%
Fair Value
$66.84
Current Price
$174.24
$107.40 premium
Margin of Safety
+36.5%
Fair Value
$716.04
Current Price
$454.97
$261.07 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Safe zone — low bankruptcy risk
Growing faster than its price suggests
Attractively priced relative to earnings
Keeps 33 of every $100 in revenue as profit
Strong operational efficiency at 39.6%
Safe zone — low bankruptcy risk
Large-cap with strong market position
Every $100 of equity generates 23 in profit
Conservative balance sheet, low leverage
Areas to Watch
ROE of 7.0% — below average capital efficiency
0.9% margin — thin
Earnings declined 59.3%
Negative free cash flow — burning cash
Expensive relative to growth rate
Moderate valuation
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : HUM
The strongest argument for HUM centers on Price/Book, Altman Z-Score, PEG Ratio. Revenue growth of 11.3% demonstrates continued momentum. PEG of 0.99 suggests the stock is reasonably priced for its growth.
Bull Case : VRTX
The strongest argument for VRTX centers on Profit Margin, Operating Margin, Altman Z-Score. Profitability is solid with margins at 32.9% and operating margin at 39.6%.
Bear Case : HUM
The primary concerns for HUM are Return on Equity, Profit Margin, EPS Growth. Thin 0.9% margins leave little buffer for downturns.
Bear Case : VRTX
The primary concerns for VRTX are PEG Ratio, P/E Ratio, Piotroski F-Score.
Key Dynamics to Monitor
HUM profiles as a value stock while VRTX is a mature play — different risk/reward profiles.
HUM carries more volatility with a beta of 0.41 — expect wider price swings.
HUM is growing revenue faster at 11.3% — sustainability is the question.
VRTX generates stronger free cash flow (349M), providing more financial flexibility.
Bottom Line
VRTX scores higher overall (66/100 vs 58/100), backed by strong 32.9% margins. 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.
Visit Website →Vertex Pharmaceuticals Inc
HEALTHCARE · BIOTECHNOLOGY · USA
Vertex Pharmaceuticals, Inc. is an American biopharmaceutical company based in Boston, Massachusetts.
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