[1] Price: UNH market valuation (P/EBIT) is significantly higher vs CI
[2] Performance: Compared to CI, UNH has worse revenue growth performance but similar margin performance
[3] Proof: In the past 3 years, UNH returned much higher 65% vs 41% for CI
[4] Recovery: UNH performed worse vs CI in post-covid recovery
In this case, the decision is not obvious but digging deeper into metrics below can help
Peer Comparison: General
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UnitedHealth Group Cigna
Price P/S 1.5 0.5 P/EBIT 17.3 7.0
Performance: Revenue Growth worse better Last Quarter 7.5% 9.1% Last 12 Months 6.2% 4.5% Last 3-Years Average 8.4% 56%
Performance: Operating Margin Increase similar similar LTM* Increase 58 bps 230 bps Last 3-Years Increase 115 bps -156 bps
Proof: Past 3 Year Market Returns 65% 41%
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Peer Comparison: Recovery
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UnitedHealth Group Cigna
Recovery: Revenue Growth worse better QoQ 0.5% 1.8% Q (yoy) 7.5% 9.1% Q (yoy) vs
LTM 7.5% vs
6.2% 9.1% vs
4.5%----------------------------------------------------------------------------------------------------------------------------
Note: QoQ = most recent quarter growth over quarter before it; Q (yoy) = most recent quarter growth over same quarter a year ago; LTM = last 12 months
Interesting buy opportunities on Better Buy Than UNH Stock: Pay Less To Get More From Industry Peers CNC, HUM, CI Uncover price discontinuities on UnitedHealth Group counter-intuitive comparison