Compare Stocks › BAC vs HUM

Bank of America Corporation (BAC) vs Humana Inc. (HUM): Which Is the Better Buy in 2026?

As of 2026-09-17, BAC is undervalued at $58, with a DCF intrinsic value of $142 and a margin of safety of 59%. HUM is undervalued at $385, with an intrinsic value of $1003 and a margin of safety of 62%. Of the two, HUM has the wider margin of safety.

BAC

Bank of America Corporation

$57.71

HUM

Humana Inc.

$385.37

Rewards

BAC

★Bank of America Corporation scores 100/100 on the Economic Moat Score (Wide Moat), with revenue predictability as the strongest competitive dimension.
★PEG ratio of 0.90 suggests the stock is undervalued relative to its growth rate — paying less than 1x for each unit of earnings growth.

HUM

★Humana Inc. scores 98/100 on the Economic Moat Score (Wide Moat), with revenue predictability as the strongest competitive dimension.
★Altman Z-Score of 4.08 indicates very low bankruptcy risk — the company is firmly in the safe zone.
★Net debt/EBITDA of -2.5x means the company holds more cash than debt — a net cash position.

Risks

BAC

⚠Gross margin of 0.0% is low, suggesting a competitive or commodity-like market with limited pricing power.
⚠Altman Z-Score of 0.22 places the company in the distress zone — financial patterns resemble those of companies that experienced bankruptcy.

HUM

⚠Gross margin of 13.7% is low, suggesting a competitive or commodity-like market with limited pricing power.
⚠Trailing P/E of 36.4x is 50% above the historical average of 24.3x — the stock trades at a premium to its own history.
⚠Free cash flow has declined at a 52.3% CAGR over the past 4 years — a concerning trend.

Key Valuation Metrics

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BAC

HUM

Valuation

N/A

Free Cash Flow

$1.94B

N/A

FCF Yield

4.19%

13.33

Trailing P/E

36.42

10.91

Forward P/E

23.26

Quality & Moat

4.37%

ROIC

11.72%

11.20%

ROE

6.89%

0.00%

Gross Margin

13.65%

0.90

PEG Ratio

1.36

Balance Sheet Safety

N/A

Net Debt / Equity

Net cash

N/A

Interest Coverage

N/A

Net Debt / EBITDA

-2.54

2.21%

Dividend Yield

0.92%

BAC: 5Ties: 1HUM: 2

BACHUM

Historical Fundamentals

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BAC

Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.

HUM

$1 Retained Earnings Test

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BAC

$2.37

created per $1 retained over 3 years

Exceptional Value Creator

Σ Retained

$55.63B

Δ Market Cap

+$131.83B

Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer

HUM

$-9.22

created per $1 retained over 3 years

Market Cap Declined

Σ Retained

$3.59B

Δ Market Cap

$-33.12B

Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer

Discounted Cash Flow (DCF) Analysis

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BAC

59.4% Margin of Safety

Price is 59.4% below estimated fair value

Current Price: $57.71

Strongly undervalued

Undervalued

Fairly valued

Overvalued

Strongly overvalued

Fair Value: $142.10

Strongly undervalued

Undervalued

Fairly valued

Overvalued

Strongly overvalued

HUM

61.6% Margin of Safety

Price is 61.6% below estimated fair value

Current Price: $385.37

Strongly undervalued

Undervalued

Fairly valued

Overvalued

Strongly overvalued

Fair Value: $1003.29

Strongly undervalued

Undervalued

Fairly valued

Overvalued

Strongly overvalued

Reverse DCF — Market-Implied Growth

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BAC

Requires positive FCF to compute implied growth rate.

HUM

What growth rate is the market pricing in at $385?

+10.9%

Market-Implied Owner Earnings Growth

Standard FCF implies +7.1%

The market implies +10.9% Owner Earnings growth, above historical trends.

Standard FCF implies a demanding +7.1%, reflecting heavy growth investment.

Economic Moat Score

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BAC

100/100

Wide Moat

70+ Wide · 40-69 Narrow · <40 None

Wide moat driven primarily by revenue predictability. Reinvestment Efficiency is the area most vulnerable to competitive pressure.

Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 4 years of fundamental data.

HUM

98/100

Wide Moat

70+ Wide · 40-69 Narrow · <40 None

Wide moat driven primarily by revenue predictability. Margin Stability is the area most vulnerable to competitive pressure.

Forensic Accounting

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BAC

-2.31

Unlikely Manipulator

Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone

M-Score Trend

Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.

HUM

-2.27

Unlikely Manipulator

Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone

M-Score Trend

Ownership Breakdown

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BAC

Insiders 7.0%Institutions 71.3%Retail & Other 21.7%

No. of Institutional Holders4,542

High insider ownership aligns management incentives with shareholders — a key signal in Buffett-style analysis. Institutional concentration can indicate smart-money conviction but also crowding risk.

HUM

Insiders 0.2%Institutions 100.8%

No. of Institutional Holders1,312

High insider ownership aligns management incentives with shareholders. Institutional concentration can indicate smart-money conviction but also crowding risk.

Insider Buying Activity

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BAC

Buys (3M)

Buys (12M)

No open market insider purchases found.

Open market purchases · includes direct & indirect ownership · excludes option exercises

HUM

Buys (3M)

Buys (12M)

Total value (12M): $150,016

SHETTY SANJAY K

Officer

$150,016

@ $185.20 · 2026-02-23

RECHTIN JAMES A.

Chief Executive Officer

$1.50M

@ $229.25 · 2025-05-14

Open market purchases · includes direct & indirect ownership · excludes option exercises

Open market purchases · includes direct & indirect ownership · excludes option exercises.

Insider Selling Activity

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BAC

Sells (3M)

Sells (12M)

Total value (12M): $20.17M

MENSAH BERNARD AMPONSAH

Officer

$4.41M

@ $46.94 · 2026-03-12

BRONSTEIN SHERI B

Officer

$2.99M

@ $49.91 · 2026-03-05

SCRIVENER THOMAS M

Officer

$2.49M

@ $49.82 · 2026-03-05

ATHANASIA DEAN C

President

$6.86M

@ $50.21 · 2026-03-03

BORTHWICK ALASTAIR M.

Chief Financial Officer

$3.42M

@ $50.24 · 2026-02-27

Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives

HUM

Sells (3M)

Sells (12M)

HUVAL TIMOTHY S.

Officer

$948,925

@ $256.26 · 2024-12-31

Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives

Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives.

🎭 Mr. Market's Mood

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BAC

😐Neutral(53/100)

"Market is pricing this stock without strong emotion in either direction"

Composite sentiment score based on 6 market signals. Inspired by Buffett's "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.

HUM

😐Neutral(59/100)

"Market is pricing this stock without strong emotion in either direction"

Composite sentiment score based on market signals. Inspired by Buffett’s "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.

⚖️ Buffett Signal

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BAC

⚪Awaiting DCF Data

The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.

DCF Margin of Safety: N/AMr. Market's Mood: Neutral (53)

HUM

⚪Awaiting DCF Data

The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.

DCF Margin of Safety: N/AMr. Market's Mood: Neutral (59)

View BAC Full Analysis View HUM Full Analysis

Frequently Asked Questions: BAC vs HUM

Is Bank of America Corporation or Humana Inc. more undervalued in 2026?▼

Based on our discounted cash flow model, HUM trades at a 61.6% margin of safety (intrinsic value $1003 vs. price $385), compared to BAC's 59.4% margin of safety (intrinsic $142 vs. $58).

Which stock has a wider economic moat, Bank of America Corporation or Humana Inc.?▼

BAC scores 100/100 (Wide moat), while HUM scores 98/100 (Wide moat). The moat score measures competitive advantage durability across ROIC consistency, margin stability, revenue predictability, and reinvestment efficiency.

Is Bank of America Corporation in financial distress?▼

BAC's Altman Z-Score of 0.2 places it in the Distress zone, signaling elevated bankruptcy risk. HUM scores 4.1 (Safe zone). The Altman Z-Score is a five-factor model that predicts insolvency within two years; scores below 1.81 indicate significant distress.

Which stock has higher return on invested capital, Bank of America Corporation or Humana Inc.?▼

HUM earns 11.7% ROIC versus BAC's 4.4%. A higher ROIC means the company generates more profit per dollar of capital employed, a hallmark of durable competitive advantage in Buffett-style analysis.

Which dividend is safer, Bank of America Corporation's or Humana Inc.'s?▼

BAC's dividend earns a safety score of 79/100 (Safe), compared to HUM's 55/100 (Borderline). BAC has raised its dividend for 3 consecutive years.