UnitedHealth Group (NYSE: UNH) is one of 13 public companies in the “Managed Health Care” industry, but how does it compare to its competitors? We will compare UnitedHealth Group to related companies based on the strength of its risk, dividends, valuation, analyst recommendations, institutional ownership, profitability and earnings.

Dividends

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 19.9% of their earnings in the form of a dividend. UnitedHealth Group has raised its dividend for 7 consecutive years.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for UnitedHealth Group and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
UnitedHealth Group 0 0 22 0 3.00
UnitedHealth Group Competitors 81 932 1475 24 2.57

UnitedHealth Group currently has a consensus target price of $218.14, suggesting a potential upside of 2.65%. As a group, “Managed Health Care” companies have a potential downside of 2.03%. Given UnitedHealth Group’s stronger consensus rating and higher probable upside, equities analysts clearly believe UnitedHealth Group is more favorable than its competitors.

Volatility & Risk

UnitedHealth Group has a beta of 0.64, indicating that its share price is 36% less volatile than the S&P 500. Comparatively, UnitedHealth Group’s competitors have a beta of 0.68, indicating that their average share price is 32% less volatile than the S&P 500.

Earnings & Valuation

This table compares UnitedHealth Group and its competitors revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
UnitedHealth Group $184.83 billion $7.02 billion 23.56
UnitedHealth Group Competitors $50.73 billion $1.52 billion 9.53

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

Profitability

This table compares UnitedHealth Group and its competitors’ 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 1.83% 11.42% 3.50%

Institutional and Insider Ownership

85.7% of UnitedHealth Group shares are held by institutional investors. Comparatively, 90.7% 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, 2.4% of shares of all “Managed Health Care” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

UnitedHealth Group beats its competitors on 10 of the 15 factors compared.

About UnitedHealth Group

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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