UnitedHealth Group (NYSE: UNH) and Triple-S Management Corporation (NYSE:GTS) are both medical companies, but which is the better investment? We will compare the two companies based on the strength of their profitabiliy, dividends, analyst recommendations, risk, institutional ownership, earnings and valuation.

Insider and Institutional Ownership

86.4% of UnitedHealth Group shares are held by institutional investors. Comparatively, 81.2% of Triple-S Management Corporation shares are held by institutional investors. 0.9% of UnitedHealth Group shares are held by company insiders. Comparatively, 1.5% of Triple-S Management Corporation shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

UnitedHealth Group pays an annual dividend of $3.00 per share and has a dividend yield of 1.5%. Triple-S Management Corporation does not pay a dividend. UnitedHealth Group pays out 35.1% of its earnings in the form of a dividend. Triple-S Management Corporation has increased its dividend for 7 consecutive years.

Risk and Volatility

UnitedHealth Group has a beta of 0.64, suggesting that its stock price is 36% less volatile than the S&P 500. Comparatively, Triple-S Management Corporation has a beta of 0.58, suggesting that its stock price is 42% less volatile than the S&P 500.

Valuation & Earnings

This table compares UnitedHealth Group and Triple-S Management Corporation’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
UnitedHealth Group $192.60 billion 1.00 $15.57 billion $8.54 22.81
Triple-S Management Corporation $2.95 billion 0.12 $15.77 million $0.40 38.95

UnitedHealth Group has higher revenue and earnings than Triple-S Management Corporation. UnitedHealth Group is trading at a lower price-to-earnings ratio than Triple-S Management Corporation, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares UnitedHealth Group and Triple-S Management Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
UnitedHealth Group 4.32% 21.52% 6.81%
Triple-S Management Corporation 0.33% -0.44% -0.17%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for UnitedHealth Group and Triple-S Management Corporation, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
UnitedHealth Group 0 0 21 0 3.00
Triple-S Management Corporation 0 0 0 0 N/A

UnitedHealth Group presently has a consensus target price of $199.55, indicating a potential upside of 2.45%. Given UnitedHealth Group’s higher probable upside, research analysts plainly believe UnitedHealth Group is more favorable than Triple-S Management Corporation.

Summary

UnitedHealth Group beats Triple-S Management Corporation on 12 of the 16 factors compared between the two stocks.

UnitedHealth Group Company Profile

UnitedHealth Group Incorporated is a health and well-being company. The Company operates through four segments: UnitedHealthcare, OptumHealth, OptumInsight and OptumRx. It conducts its operations through two business platforms: health benefits operating under UnitedHealthcare and health services operating under Optum. UnitedHealthcare provides healthcare benefits to an array of customers and markets, and includes UnitedHealthcare Employer & Individual, UnitedHealthcare Medicare & Retirement, UnitedHealthcare Community & State, and UnitedHealthcare Global businesses. Optum is a health services business serving the healthcare marketplace, including payers, care providers, employers, governments, life sciences companies and consumers, through its OptumHealth, OptumInsight and OptumRx businesses. OptumInsight provides services, technology and healthcare solutions to participants in the healthcare industry. OptumRx provides retail network contracting, purchasing and clinical solutions.

Triple-S Management Corporation Company Profile

Triple-S Management Corporation operates as a managed care company. The Company offers a range of managed care and related products in the commercial, Medicaid and Medicare markets. The Company’s segments include Managed Care, Life Insurance, and Property and Casualty Insurance. The Managed Care segment is engaged in the sale of managed care products to the Commercial, Medicare and Medicaid market sectors. The Life Insurance segment offers life and accident and health insurance coverage, and annuity products. The premiums for this segment are mainly subscribed through an internal sales force and a network of independent brokers and agents. The insurance products of Property and Casualty Insurance segment includes commercial package, commercial auto, and personal package. The premiums for this segment are originated through a network of independent insurance agents and brokers.

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