UnitedHealth Group (NYSE:UNH) vs. Its Competitors Financial Contrast

UnitedHealth Group (NYSE: UNH) is one of 12 publicly-traded companies in the “Managed Health Care” industry, but how does it compare to its rivals? We will compare UnitedHealth Group to similar companies based on the strength of its valuation, institutional ownership, profitability, earnings, risk, analyst recommendations and dividends.

Dividends

UnitedHealth Group pays an annual dividend of $3.00 per share and has a dividend yield of 1.3%. 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 19.9% of their earnings in the form of a dividend. UnitedHealth Group has raised its dividend for 7 consecutive years.

Profitability

This table compares UnitedHealth Group and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
UnitedHealth Group 4.50% 21.52% 6.99%
UnitedHealth Group Competitors 2.46% 14.72% 4.56%

Analyst Ratings

This is a summary of current ratings and recommmendations for UnitedHealth Group and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
UnitedHealth Group 0 0 21 0 3.00
UnitedHealth Group Competitors 76 909 1483 24 2.58

UnitedHealth Group presently has a consensus target price of $227.19, indicating a potential upside of 0.18%. As a group, “Managed Health Care” companies have a potential downside of 6.56%. Given UnitedHealth Group’s stronger consensus rating and higher possible upside, analysts plainly believe UnitedHealth Group is more favorable than its rivals.

Institutional & Insider Ownership

86.2% of UnitedHealth Group shares are held by institutional investors. Comparatively, 91.2% of shares of all “Managed Health Care” companies are held by institutional investors. 0.9% of UnitedHealth Group shares are held by company insiders. Comparatively, 1.9% of shares of all “Managed Health Care” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

This table compares UnitedHealth Group and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
UnitedHealth Group $184.83 billion $7.02 billion 25.14
UnitedHealth Group Competitors $50.73 billion $1.52 billion 21.32

UnitedHealth Group has higher revenue and earnings than its rivals. UnitedHealth Group is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Volatility & Risk

UnitedHealth Group has a beta of 0.65, suggesting that its share price is 35% less volatile than the S&P 500. Comparatively, UnitedHealth Group’s rivals have a beta of 0.61, suggesting that their average share price is 39% less volatile than the S&P 500.

Summary

UnitedHealth Group beats its rivals on 11 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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