Humana vs Molina Healthcare

Humana and Molina Healthcare are two leading companies in the health insurance industry, both offering a range of services to help individuals and families access quality healthcare. Humana's stock has seen steady growth in recent years, driven by its strong financial performance and diverse product offerings. On the other hand, Molina Healthcare has also shown resilience in the market, with its focus on providing healthcare services to underserved populations. Investors looking to invest in the healthcare sector may find opportunities in both Humana and Molina Healthcare stocks, each offering unique value propositions and growth potential.

Humana or Molina Healthcare?

When comparing Humana and Molina Healthcare, 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 Molina Healthcare.

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 Molina Healthcare 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, Molina Healthcare 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 Molina Healthcare's P/E ratio at 17.59. 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 Molina Healthcare's P/B ratio is 3.86.

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 Molina Healthcare's is 1.08%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Humana's ROE at 10.37% and Molina Healthcare's ROE at 24.39%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $251.24 for Humana and $322.53 for Molina Healthcare. Over the past year, Humana's prices ranged from $213.31 to $530.54, with a yearly change of 148.72%. Molina Healthcare's prices fluctuated between $282.96 and $423.92, with a yearly change of 49.82%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.