HUM vs UNH vs CVS

For growth investors, UnitedHealth Group Incorporated (UNH) is the stronger pick with 11.

8% revenue growth year-over-year, versus 7. 8% for CVS Health Corporation (CVS). Humana Inc. (HUM) offers the better valuation at 25. 0x trailing P/E (27. 6x forward), making it the more compelling value choice. Analysts rate UnitedHealth Group Incorporated (UNH) a "Buy" — based on 52 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Humana Inc.

(HUM) is the cheapest at 25. 0x versus CVS Health Corporation at 62. 5x. On forward P/E, CVS Health Corporation is actually cheaper at 12. 1x — notably different from the trailing picture, reflecting expected earnings growth.

Over the past 5 years, CVS Health Corporation (CVS) delivered a total return of +18.

4%, compared to -43. 5% for Humana Inc. (HUM). Over 10 years, the gap is even starker: UNH returned +220. 3% versus CVS's +3. 9%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), CVS Health Corporation (CVS) is the lower-risk stock at 0.

05β versus UnitedHealth Group Incorporated's 0. 59β — meaning UNH is approximately 1059% more volatile than CVS relative to the S&P 500. On balance sheet safety, Humana Inc. (HUM) carries a lower debt/equity ratio of 73% versus 124% for CVS Health Corporation — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), UnitedHealth Group Incorporated (UNH) is pulling ahead at 11.

8% versus 7. 8% for CVS Health Corporation (CVS). On earnings-per-share growth, the picture is similar: Humana Inc. grew EPS -1. 4% year-over-year, compared to -62. 0% for CVS Health Corporation. Over a 3-year CAGR, HUM leads at 11. 7% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

UnitedHealth Group Incorporated (UNH) is the more profitable company, earning 2.

7% net margin versus 0. 4% for CVS Health Corporation — meaning it keeps 2. 7% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: UNH leads at 4. 2% versus 1. 1% for HUM. At the gross margin level — before operating expenses — UNH leads at 18. 5%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

On forward earnings alone, CVS Health Corporation (CVS) trades at 12.

1x forward P/E versus 27. 6x for Humana Inc. — 15. 5x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for CVS: 9. 6% to $95. 20.

All stocks in this comparison pay dividends.

CVS Health Corporation (CVS) offers the highest yield at 3. 1%, versus 1. 4% for Humana Inc. (HUM).

For long-horizon retirement investors, CVS Health Corporation (CVS) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

05), 3. 1% yield). Both have compounded well over 10 years (CVS: +3. 9%, HUM: +59. 9%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Healthcare sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: HUM is a mid-cap quality compounder stock; UNH is a large-cap quality compounder stock; CVS is a mid-cap income-oriented stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.