First Physicians Capital Group (OTCMKTS:FPCG) vs. UnitedHealth Group (NYSE:UNH) Head to Head Review

UnitedHealth Group (NYSE:UNH) and First Physicians Capital Group (OTCMKTS:FPCG) are both medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, profitability, valuation, dividends, earnings, institutional ownership and analyst recommendations.

Risk and Volatility

UnitedHealth Group has a beta of 0.45, meaning that its stock price is 55% less volatile than the S&P 500. Comparatively, First Physicians Capital Group has a beta of -12.47, meaning that its stock price is 1,347% less volatile than the S&P 500.

Institutional & Insider Ownership

87.9% of UnitedHealth Group shares are held by institutional investors. 0.3% of UnitedHealth Group shares are held by insiders. Comparatively, 12.1% of First Physicians Capital Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings for UnitedHealth Group and First Physicians Capital Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
UnitedHealth Group	1	8	16	0	2.60
First Physicians Capital Group	0	0	0	0	0.00

UnitedHealth Group presently has a consensus target price of $415.57, suggesting a potential upside of 34.62%. Given UnitedHealth Group’s stronger consensus rating and higher possible upside, research analysts plainly believe UnitedHealth Group is more favorable than First Physicians Capital Group.

Earnings and Valuation

This table compares UnitedHealth Group and First Physicians Capital Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
UnitedHealth Group	$400.28 billion	0.70	$14.41 billion	$23.88	12.93
First Physicians Capital Group	N/A	N/A	N/A	N/A	N/A

UnitedHealth Group has higher revenue and earnings than First Physicians Capital Group.

Profitability

This table compares UnitedHealth Group and First Physicians Capital Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
UnitedHealth Group	5.39%	26.29%	8.67%
First Physicians Capital Group	N/A	N/A	N/A

Summary

UnitedHealth Group beats First Physicians Capital Group on 9 of the 10 factors compared between the two stocks.

About UnitedHealth Group

UnitedHealth Group Incorporated operates as a diversified health care company in the United States. The company operates through four segments: UnitedHealthcare, Optum Health, Optum Insight, and Optum Rx. The UnitedHealthcare segment offers consumer-oriented health benefit plans and services for national employers, public sector employers, mid-sized employers, small businesses, and individuals; health care coverage, and health and well-being services to individuals age 50 and older addressing their needs; Medicaid plans, children's health insurance and health care programs; and health and dental benefits, and hospital and clinical services, as well as health care benefits products and services to state programs caring for the economically disadvantaged, medically underserved, and those without the benefit of employer-funded health care coverage. The Optum Health segment provides care delivery, care management, wellness and consumer engagement, and health financial services patients, consumers, care delivery systems, providers, employers, payers, and public-sector entities. The Optum Insight segment offers software and information products, advisory consulting arrangements, and managed services outsourcing contracts to hospital systems, physicians, health plans, governments, life sciences companies, and other organizations. The Optum Rx segment provides pharmacy care services and programs, including retail network contracting, home delivery, specialty and community health pharmacy services, infusion, and purchasing and clinical capabilities, as well as develops programs in the areas of step therapy, formulary management, drug adherence, and disease/drug therapy management. UnitedHealth Group Incorporated was founded in 1974 and is based in Minnetonka, Minnesota.

About First Physicians Capital Group

Avem Health Partners, Inc. provides financial, technology, management, and capital solutions to hospitals in rural markets. Its services benefit residents and their physicians, as well as help to sustain and preserve the quality of healthcare services in these communities. The company was founded in 1980 and is headquartered in Oklahoma City, Oklahoma.