Humana vs Kaiser

Humana and Kaiser Permanente are two major players in the healthcare industry, each offering a range of services to millions of customers across the United States. Investing in stocks of these companies can be a wise decision for those looking to capitalize on the growing healthcare sector. Humana is known for its focus on Medicare Advantage plans, while Kaiser Permanente is a unique healthcare model offering both insurance and healthcare services. Both companies have shown steady growth in recent years, making them attractive options for investors.

Humana or Kaiser?

When comparing Humana and Kaiser, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Humana and Kaiser.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Humana has a dividend yield of 1.37%, while Kaiser has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Humana reports a 5-year dividend growth of 12.10% year and a payout ratio of 25.48%. On the other hand, Kaiser reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Humana P/E ratio at 18.13 and Kaiser's P/E ratio at 134.64. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Humana P/B ratio is 1.86 while Kaiser's P/B ratio is 5.77.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Humana has seen a 5-year revenue growth of 1.07%, while Kaiser's is 0.19%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Humana's ROE at 10.37% and Kaiser's ROE at 8.71%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $251.24 for Humana and ₹7.80 for Kaiser. Over the past year, Humana's prices ranged from $213.31 to $530.54, with a yearly change of 148.72%. Kaiser's prices fluctuated between ₹0.48 and ₹8.22, with a yearly change of 1612.50%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.