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HUM vs UNH
Which Stock Would AI Choose? Humana Inc. (HUM) vs. UnitedHealth Group Incorporated (UNH) Stock Comparison
Key Takeaways
- Both HUM and UNH have surged in recent weeks, driven by favorable Centers for Medicare & Medicaid Services (CMS) updates on Medicare Advantage rates.
- HUM leads year-to-date (YTD) performance with +15.3% gains, outpacing UNH's +7.2%.
- UNH offers greater scale with a $319 billion market cap compared to HUM's $26 billion, alongside diversification through its Optum services unit.
- Recent earnings beats and raised guidance have boosted sentiment for both, with UNH posting strong Q1 results and HUM lifting its 2025 EPS (earnings per share) outlook.
- Analyst targets suggest modest upside for HUM (around $238) versus stronger potential for UNH (around $386).
- Policy risks in Medicare Advantage remain a shared concern, but recent momentum favors short-term traders eyeing HUM.
Introduction
Humana Inc. (HUM) and UnitedHealth Group Incorporated (UNH) are leading players in the U.S. health insurance sector, with heavy exposure to Medicare Advantage plans. This stock comparison is timely amid recent regulatory tailwinds from CMS, which has increased reimbursement rates, alleviating prior margin pressures. Investors and traders focused on healthcare stocks, particularly those tracking managed care providers, will find value in evaluating their relative performance, business models, and market positioning. Both have delivered sharp rebounds in recent market activity, highlighting opportunities in relative strength and sector recovery.
HUM Overview and Recent Performance
Humana Inc. (HUM) specializes in health insurance, with a strong emphasis on Medicare Advantage and government-sponsored programs. Its CenterWell brand extends into primary care and pharmacy services. Trading around $217 recently, the stock has climbed within a 52-week range of $163 to $315, reflecting volatility tied to Medicare policy shifts. In recent weeks, HUM has gained over 20%, propelled by CMS announcements boosting Medicare Advantage payments and the company's raised 2025 EPS outlook alongside a partnership with Mark Cuban Cost Plus Drug Company. YTD returns stand at +15.3%, with a market cap of $26 billion and P/E ratio of 22, signaling improved sentiment as medical loss ratios stabilize.
UNH Overview and Recent Performance
UnitedHealth Group Incorporated (UNH), the largest U.S. health insurer by market cap, operates UnitedHealthcare insurance alongside Optum's pharmacy benefits, data analytics, and clinic operations. Shares hover near $351, within a 52-week range of $235 to $424. Recent market activity has seen gains exceeding 25%, fueled by robust Q1 2026 earnings that beat estimates, flat adjusted EPS amid revenue growth, and an upward revision to full-year guidance. YTD performance is +7.2%, supported by a $319 billion market cap, P/E of 27, and a 2.5% dividend yield, underscoring resilience despite broader sector headwinds.
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Head-to-Head Comparison
HUM and UNH both thrive in managed care but differ in scale and diversification: HUM derives over 80% of revenue from Medicare Advantage, heightening policy sensitivity, while UNH balances insurance with Optum's high-margin services for steadier growth drivers. Recent momentum favors both post-CMS rate hikes, though HUM edges YTD returns amid valuation recovery. Risk factors include rising medical costs and regulatory scrutiny, with UNH's beta of 0.41 indicating lower volatility than HUM's 0.44. Market sentiment has shifted positively, but UNH commands premium multiples due to superior profitability (2.7% profit margin vs. peers) and cash flow generation.
Tickeron AI Verdict
Tickeron’s AI models currently lean toward UNH with moderate conviction, citing its unmatched scale, diversified revenue streams, and consistent trend stability amid recent earnings strength. While HUM exhibits sharper short-term momentum, UNH's relative positioning and catalysts like Optum growth offer higher probability of sustained outperformance in the near term.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer. Disclaimers and Limitations
Humana Inc. (HUM) and UnitedHealth Group Incorporated (UNH) are large healthcare companies based in the US. Unitedhealth is the larger of the two by several orders of magnitude, with an enterprise value of $424B, while Humana has an EV of $57B at the time of this writing. Both companies operate as insurers for major medical policies, as well as supplemental policies such as Medicare Advantage and dental coverages. UNH operates in multiple segments under the Optum brand and the Unitedhealth brand, serving medical and pharmaceutical industry infrastructure with financial services and other logistics. Both companies derive significant income from government contracts for Medicaid, Medicare, and ACA-related health policies. Their margins are more modest than some industries, but they have reliable earnings. UNH has a slightly better ROE, currently at 22% at the time of this writing compared to HUM’s 17%, but their ROA is almost the same figure, at approximately 6.4%.
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is undervalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
HUM’s FA Score shows that 3 FA rating(s) are green whileUNH’s FA Score has 3 green FA rating(s).
- HUM’s FA Score: 3 green, 2 red.
- UNH’s FA Score: 3 green, 2 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
HUM’s TA Score shows that 4 TA indicator(s) are bullish while UNH’s TA Score has 5 bullish TA indicator(s).
- HUM’s TA Score: 4 bullish, 3 bearish.
- UNH’s TA Score: 5 bullish, 4 bearish.
Price Growth
HUM (@Managed Health Care) experienced а +8.32% price change this week, while UNH (@Managed Health Care) price change was +2.27% for the same time period.
The average weekly price growth across all stocks in the @Managed Health Care industry was +6.13%. For the same industry, the average monthly price growth was +14.56%, and the average quarterly price growth was +35.18%.
Reported Earning Dates
HUM is expected to report earnings on Jul 29, 2026.
UNH is expected to report earnings on Jul 16, 2026.
Industries' Descriptions
@Managed Health Care (+6.13% weekly)Managed healthcare industry focuses on providing health/medical and disability insurance plans, generally intended to reduce the cost of for-profit health care. The insurance products might be provided through employer-paid (fully or partly) insurance and benefit programs, or through Medicare/Medicaid. Some of the largest providers of managed health care include Aetna, Humana Inc., and Cigna, and UnitedHealthcare.
| HUM | UNH | HUM / UNH | |
| Capitalization | 45.5B | 371B | 12% |
| EBITDA | N/A | 22.8B | - |
| Gain YTD | 48.810 | 24.715 | 197% |
| P/E Ratio | 40.47 | 30.76 | 132% |
| Revenue | 137B | 450B | 30% |
| Total Cash | 22B | 31.2B | 71% |
| Total Debt | 14B | 77.9B | 18% |
HUM | UNH | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 43 | 71 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 11 Undervalued | 6 Undervalued | |
PROFIT vs RISK RATING 1..100 | 100 | 92 | |
SMR RATING 1..100 | 95 | 64 | |
PRICE GROWTH RATING 1..100 | 3 | 14 | |
P/E GROWTH RATING 1..100 | 7 | 8 | |
SEASONALITY SCORE 1..100 | 85 | n/a |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
UNH's Valuation (6) in the Managed Health Care industry is in the same range as HUM (11). This means that UNH’s stock grew similarly to HUM’s over the last 12 months.
UNH's Profit vs Risk Rating (92) in the Managed Health Care industry is in the same range as HUM (100). This means that UNH’s stock grew similarly to HUM’s over the last 12 months.
UNH's SMR Rating (64) in the Managed Health Care industry is in the same range as HUM (95). This means that UNH’s stock grew similarly to HUM’s over the last 12 months.
HUM's Price Growth Rating (3) in the Managed Health Care industry is in the same range as UNH (14). This means that HUM’s stock grew similarly to UNH’s over the last 12 months.
HUM's P/E Growth Rating (7) in the Managed Health Care industry is in the same range as UNH (8). This means that HUM’s stock grew similarly to UNH’s over the last 12 months.
| HUM | UNH | |
|---|---|---|
| RSI ODDS (%) | N/A | 4 days ago 64% |
| Stochastic ODDS (%) | 4 days ago 66% | 4 days ago 62% |
| Momentum ODDS (%) | N/A | 4 days ago 59% |
| MACD ODDS (%) | 4 days ago 62% | 4 days ago 55% |
| TrendWeek ODDS (%) | 4 days ago 59% | 4 days ago 54% |
| TrendMonth ODDS (%) | 4 days ago 59% | 4 days ago 51% |
| Advances ODDS (%) | 4 days ago 60% | 8 days ago 54% |
| Declines ODDS (%) | 26 days ago 67% | 5 days ago 55% |
| BollingerBands ODDS (%) | 4 days ago 68% | 4 days ago 56% |
| Aroon ODDS (%) | 4 days ago 54% | 4 days ago 45% |
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