Humana Inc. (HUM) vs UnitedHealth Group Incorporated (UNH)

Humana Inc. and UnitedHealth Group Incorporated are both Healthcare Plans companies. UnitedHealth Group Incorporated is the larger, with a market value of $336.8B against $45.7B — 7.4× the size. UnitedHealth Group Incorporated trades at the lower P/E: 24.2× against 37.4×. Humana Inc. grew revenue faster over the last twelve months: 18.3% against 6.46%. UnitedHealth Group Incorporated has the higher net margin (3.14% vs 0.88%) and the lower return on invested capital (9.50% vs 17.5%). Both pay a dividend; UnitedHealth Group Incorporated yields more (1.53% vs 1.07%). Across the 23 metrics below, UnitedHealth Group Incorporated leads on 14 and Humana Inc. on 9.

Valuation

Metric HUM UNH Healthcare Plans median
P/E 37.36 24.23 23.75
P/S 0.33 0.75 0.40
P/B 2.48 3.25 2.48
Price to free cash flow 24.23 14.38 11.15
EV/EBITDA 10.94 14.55 10.94
EV/Sales 0.26 0.84 0.37
Earnings yield 2.68% 4.13% 3.25%
Free cash flow yield 4.13% 6.95% 8.15%

Profitability

Metric HUM UNH Healthcare Plans median
Gross margin 13.65% 19.51% 19.04%
Operating margin 1.86% 4.82% 1.93%
Net margin 0.88% 3.14% 1.04%
Free cash flow margin 1.35% 5.25% 3.18%
Return on equity 6.81% 13.78% 12.48%
Return on assets 2.38% 4.57% 2.98%
Return on invested capital 17.52% 9.50% 2.04%

Growth

Metric HUM UNH Healthcare Plans median
Revenue growth (TTM) 18.33% 6.46% 7.57%
EPS growth (last fiscal year) (1.40%) (14.70%) —
Revenue growth, 5-year CAGR 10.94% 11.72% 11.88%
Net income growth, 5-year CAGR (18.81%) (4.78%) 0.00%

Health

Metric HUM UNH Healthcare Plans median
Debt to equity 0.74 0.67 0.70
Current ratio 1.74 0.78 1.32
Net debt to EBITDA (2.14) 1.89 0.05

Dividend

Metric HUM UNH Healthcare Plans median
Dividend yield 1.07% 1.53% 1.53%
Payout ratio 0.12 0.31 0.00

Size

Metric HUM UNH Healthcare Plans median
Market cap 45.67b 336.83b 20.34b

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