How Does UnitedHealth Stock Stack Up Against Its Peers?
UnitedHealth‘s stock has notably underperformed over the past year compared to peers like CVS and Centene. A closer look reveals strong profitability, with an LTM Operating Margin of 0.06, and a moderate valuation, evidenced by a PE of 17.20 versus CVS’s 218.30. However, its LTM Revenue Growth of 0.10 trails Centene’s 0.15, suggesting a solid, mature base with limited near-term upside amidst a dynamic and challenging healthcare landscape.
- UNH’s 6.1% operating margin, highest among peers, is bolstered by its diversified Optum segment, mitigating broader industry margin pressures from rising costs.
- UNH’s 10.5% revenue growth, outpacing CVS but lagging CNC, is fueled by expansion in its Optum segment and increasing healthcare services.
- UNH’s stock is down 37.1% (1 year) with a 17.2 PE, underperforming peers due to rising medical costs, regulatory scrutiny in Medicare Advantage, and the Change Healthcare cyberattack impact.
Here’s how UnitedHealth stacks up across size, valuation, and profitability versus key peers.
| UNH | CVS | CNC | |
|---|---|---|---|
| Market Cap ($ Bil) | 302.5 | 102.4 | 22.5 |
| Revenue ($ Bil) | 435.2 | 394.1 | 185.9 |
| PE Ratio | 17.2 | 218.3 | -4.2 |
| LTM Revenue Growth | 10.5% | 6.8% | 14.9% |
| LTM Operating Margin | 6.1% | 2.7% | 0.6% |
| LTM FCF Margin | 4.0% | 1.6% | 1.8% |
| 12M Market Return | -37.1% | 63.1% | -27.8% |
For more details on UnitedHealth, read Buy or Sell UNH Stock. Below we compare UNH’s growth, margin, and valuation with peers across years
Revenue Growth Comparison
| LTM | 2024 | 2023 | 2022 | |
|---|---|---|---|---|
| UNH | 10.5% | 7.7% | 14.6% | 12.7% |
| CVS | 6.8% | 4.2% | 10.9% | 10.4% |
| CNC | 14.9% | 5.9% | 6.5% | 14.7% |
Operating Margin Comparison
| LTM | 2024 | 2023 | 2022 | |
|---|---|---|---|---|
| UNH | 6.1% | 8.1% | 8.7% | 8.8% |
| CVS | 2.7% | 2.6% | 4.1% | 5.1% |
| CNC | 0.6% | 2.0% | 2.2% | 2.5% |
PE Ratio Comparison
| LTM | 2024 | 2023 | 2022 | |
|---|---|---|---|---|
| UNH | 17.2 | 21.1 | 21.0 | 24.5 |
| CVS | 218.3 | 21.7 | 6.9 | 24.0 |
| CNC | -4.2 | 6.5 | 12.2 | 35.5 |
Still not sure about UNH stock? Consider portfolio approach.
The Best Investors Think In Portfolios
Stocks soar and sink – the key is staying invested. A balanced portfolio keeps you in the market, boosts gains and reduces single stock risk
The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.