Amazon.com vs UnitedHealth Which Is More Attractive?

Amazon.com and UnitedHealth are two of the leading companies in their respective industries. Amazon.com, the e-commerce giant, has experienced rapid growth and success in recent years, while UnitedHealth, a major health insurance provider, has been a staple in the healthcare industry for decades. Both companies have seen their stocks perform well, but their approaches to business and growth strategies differ significantly. In this comparison, we will delve into the key factors that drive the performance of Amazon.com and UnitedHealth stocks, and analyze which company may be the better investment option for investors.

Amazon.com or UnitedHealth?

When comparing Amazon.com and UnitedHealth, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Amazon.com and UnitedHealth.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Amazon.com has a dividend yield of -%, while UnitedHealth has a dividend yield of 1.57%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Amazon.com reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, UnitedHealth reports a 5-year dividend growth of 0.00% year and a payout ratio of 51.26%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Amazon.com P/E ratio at 47.81 and UnitedHealth's P/E ratio at 1.20. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Amazon.com P/B ratio is 9.20 while UnitedHealth's P/B ratio is 0.18.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Amazon.com has seen a 5-year revenue growth of 1.33%, while UnitedHealth's is 0.70%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Amazon.com's ROE at 21.82% and UnitedHealth's ROE at 15.94%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $220.60 for Amazon.com and C$26.00 for UnitedHealth. Over the past year, Amazon.com's prices ranged from $143.64 to $227.13, with a yearly change of 58.12%. UnitedHealth's prices fluctuated between C$21.03 and C$30.05, with a yearly change of 42.89%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.