UnitedHealth Group (NYSE:UNH – Get Free Report) and United American Healthcare (OTCMKTS:UAHC – Get Free Report) are both medical companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, valuation, profitability, analyst recommendations, institutional ownership, risk and dividends.
Institutional & Insider Ownership
87.9% of UnitedHealth Group shares are owned by institutional investors. 0.3% of UnitedHealth Group shares are owned by company insiders. Comparatively, 14.3% of United American Healthcare shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Dividends
UnitedHealth Group pays an annual dividend of $8.84 per share and has a dividend yield of 3.6%. United American Healthcare pays an annual dividend of $0.08 per share and has a dividend yield of 330.6%. UnitedHealth Group pays out 38.3% of its earnings in the form of a dividend. UnitedHealth Group has raised its dividend for 15 consecutive years.
Risk and Volatility
Analyst Ratings
This is a breakdown of recent recommendations for UnitedHealth Group and United American Healthcare, as provided by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
UnitedHealth Group | 3 | 6 | 15 | 0 | 2.50 |
United American Healthcare | 0 | 0 | 0 | 0 | 0.00 |
UnitedHealth Group presently has a consensus price target of $366.5238, indicating a potential upside of 49.24%. Given UnitedHealth Group’s stronger consensus rating and higher possible upside, equities research analysts plainly believe UnitedHealth Group is more favorable than United American Healthcare.
Profitability
This table compares UnitedHealth Group and United American Healthcare’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
UnitedHealth Group | 5.04% | 23.32% | 7.66% |
United American Healthcare | N/A | N/A | N/A |
Earnings and Valuation
This table compares UnitedHealth Group and United American Healthcare”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 | 0.56 | $14.41 billion | $23.08 | 10.64 |
United American Healthcare | N/A | N/A | $240,000.00 | N/A | N/A |
UnitedHealth Group has higher revenue and earnings than United American Healthcare.
Summary
UnitedHealth Group beats United American Healthcare on 11 of the 14 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 United American Healthcare
United American Healthcare Corporation, through its subsidiaries, provides contract manufacturing services to the medical device industry. It also focuses on the production of natural rubber. The company was incorporated in 1983 and is based in Chicago, Illinois.
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