Comparing UnitedHealth Group (UNH) and Its Competitors
UnitedHealth Group (NYSE: UNH) is one of 14 publicly-traded companies in the “Managed Health Care” industry, but how does it contrast to its peers? We will compare UnitedHealth Group to similar businesses based on the strength of its dividends, earnings, valuation, profitability, analyst recommendations, risk and institutional ownership.
This table compares UnitedHealth Group and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|UnitedHealth Group Competitors||1.85%||11.10%||3.61%|
This is a breakdown of current ratings and target prices for UnitedHealth Group and its peers, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|UnitedHealth Group Competitors||79||886||1445||23||2.58|
UnitedHealth Group presently has a consensus target price of $216.57, indicating a potential upside of 3.02%. As a group, “Managed Health Care” companies have a potential downside of 3.83%. Given UnitedHealth Group’s stronger consensus rating and higher probable upside, analysts plainly believe UnitedHealth Group is more favorable than its peers.
Institutional & Insider Ownership
86.1% of UnitedHealth Group shares are owned by institutional investors. Comparatively, 90.3% of shares of all “Managed Health Care” companies are owned by institutional investors. 0.9% of UnitedHealth Group shares are owned by company insiders. Comparatively, 2.4% of shares of all “Managed Health Care” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
UnitedHealth Group pays an annual dividend of $3.00 per share and has a dividend yield of 1.4%. UnitedHealth Group pays out 33.3% of its earnings in the form of a dividend. As a group, “Managed Health Care” companies pay a dividend yield of 0.9% and pay out 20.3% of their earnings in the form of a dividend. UnitedHealth Group has increased its dividend for 7 consecutive years.
Volatility and Risk
UnitedHealth Group has a beta of 0.64, suggesting that its stock price is 36% less volatile than the S&P 500. Comparatively, UnitedHealth Group’s peers have a beta of 0.77, suggesting that their average stock price is 23% less volatile than the S&P 500.
Earnings and Valuation
This table compares UnitedHealth Group and its peers top-line revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|UnitedHealth Group||$196.63 billion||$16.14 billion||23.31|
|UnitedHealth Group Competitors||$52.70 billion||$3.80 billion||16.97|
UnitedHealth Group has higher revenue and earnings than its peers. UnitedHealth Group is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.
UnitedHealth Group beats its peers on 10 of the 15 factors compared.
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.
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