Cigna Group (CI) vs Humana Inc. (HUM)

Cigna Group and Humana Inc. are both Healthcare Plans companies. Cigna Group is the larger, with a market value of $69.9B against $45.7B — 1.5× the size. Cigna Group trades at the lower P/E: 11.3× against 37.4×. Humana Inc. grew revenue faster over the last twelve months: 18.3% against 7.77%. Cigna Group has the higher net margin (2.27% vs 0.88%) and the lower return on invested capital (9.09% vs 17.5%). Both pay a dividend; Cigna Group yields more (2.03% vs 1.07%). Across the 23 metrics below, Cigna Group leads on 17 and Humana Inc. on 6.

Valuation

Metric CI HUM Healthcare Plans median
P/E 11.25 37.36 23.75
P/S 0.25 0.33 0.40
P/B 1.67 2.48 2.48
Price to free cash flow 7.85 24.23 11.15
EV/EBITDA 7.66 10.94 10.94
EV/Sales 0.34 0.26 0.37
Earnings yield 8.89% 2.68% 3.25%
Free cash flow yield 12.74% 4.13% 8.15%

Profitability

Metric CI HUM Healthcare Plans median
Gross margin 88.51% 13.65% 19.04%
Operating margin 3.53% 1.86% 1.93%
Net margin 2.27% 0.88% 1.04%
Free cash flow margin 3.23% 1.35% 3.18%
Return on equity 15.40% 6.81% 12.48%
Return on assets 4.16% 2.38% 2.98%
Return on invested capital 9.09% 17.52% 2.04%

Growth

Metric CI HUM Healthcare Plans median
Revenue growth (TTM) 7.77% 18.33% 7.57%
EPS growth (last fiscal year) 83.00% (1.40%) —
Revenue growth, 5-year CAGR 11.38% 10.94% 11.88%
Net income growth, 5-year CAGR (6.77%) (18.81%) 0.00%

Health

Metric CI HUM Healthcare Plans median
Debt to equity 0.74 0.74 0.70
Current ratio 0.74 1.74 1.32
Net debt to EBITDA 1.99 (2.14) 0.05

Dividend

Metric CI HUM Healthcare Plans median
Dividend yield 2.03% 1.07% 1.53%
Payout ratio 0.22 0.12 0.00

Size

Metric CI HUM Healthcare Plans median
Market cap 69.89b 45.67b 20.34b

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