Reviewing NeueHealth (NYSE:NEUE) & Humana (NYSE:HUM)

NeueHealth (NYSE:NEUE) and Humana (NYSE:HUM) are both medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, earnings, risk, valuation, profitability and analyst recommendations.

Valuation & Earnings

This table compares NeueHealth and Humana’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NeueHealth	$1.16 billion	0.04	-$1.15 billion	($151.20)	-0.04
Humana	$106.37 billion	0.36	$2.49 billion	$19.82	16.02

Humana has higher revenue and earnings than NeueHealth. NeueHealth is trading at a lower price-to-earnings ratio than Humana, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

NeueHealth has a beta of 0.85, suggesting that its stock price is 15% less volatile than the S&P 500. Comparatively, Humana has a beta of 0.45, suggesting that its stock price is 55% less volatile than the S&P 500.

Insider & Institutional Ownership

63.9% of NeueHealth shares are owned by institutional investors. Comparatively, 92.4% of Humana shares are owned by institutional investors. 64.3% of NeueHealth shares are owned by company insiders. Comparatively, 0.3% of Humana shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares NeueHealth and Humana’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NeueHealth	-71.23%	N/A	-1.21%
Humana	2.34%	19.44%	6.07%

Analyst Recommendations

This is a breakdown of current ratings for NeueHealth and Humana, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NeueHealth	0	1	0	0	2.00
Humana	0	10	9	0	2.47

NeueHealth currently has a consensus target price of $8.00, indicating a potential upside of 35.36%. Humana has a consensus target price of $465.42, indicating a potential upside of 46.63%. Given Humana’s stronger consensus rating and higher possible upside, analysts clearly believe Humana is more favorable than NeueHealth.

Summary

Humana beats NeueHealth on 12 of the 14 factors compared between the two stocks.

About NeueHealth

NeueHealth, Inc., a healthcare company, provides health insurance policies in the United States. It operates in two segments, Bright HealthCare and Consumer Care. The Consumer Care segment delivers virtual and in-person clinical care services contracts through primary care clinics. It operates managed and affiliated risk-bearing clinics within its integrated care delivery system, which included embedded pharmacy, laboratory, radiology, and population health focused specialty services. The Bright HealthCare segment offers medicare health plan products to consumers. The company was formerly known as Bright Health Group, Inc. and changed its name to NeueHealth, Inc. in January 2024. NeueHealth, Inc. was incorporated in 2015 and is headquartered in Minneapolis, Minnesota.

About Humana

Humana Inc., together with its subsidiaries, provides medical and specialty insurance products in the United States. It operates through two segments, Insurance and CenterWell. The company offers medical and supplemental benefit plans to individuals. It has a contract with Centers for Medicare and Medicaid Services to administer the Limited Income Newly Eligible Transition prescription drug plan program; and contracts with various states to provide Medicaid, dual eligible, and long-term support services benefits. In addition, the company provides commercial fully-insured medical and specialty health insurance benefits comprising dental, vision, life insurance, and other supplemental health benefits, as well as administrative services only products to individuals and employer groups; military services, such as TRICARE T2017 East Region contract; and engages in the operations of pharmacy benefit manager business. Further, it operates pharmacies and senior focused primary care centers; and offers home solutions services, such as home health, hospice, and other services to its health plan members, as well as to third parties. The company sells its products through employers and employees, independent brokers and agents, sales representatives, and digital insurance agencies. The company was formerly known as Extendicare Inc. and changed its name to Humana Inc. in April 1974. Humana Inc. was founded in 1961 and is headquartered in Louisville, Kentucky.