Best Buy vs UnitedHealth Which Is a Smarter Choice?

Best Buy and UnitedHealth Group are two prominent companies in the stock market with different backgrounds. Best Buy, a retail giant specializing in consumer electronics, has shown consistent growth and innovation in recent years. UnitedHealth Group, a leading healthcare provider, has also demonstrated strong financial performance and stability. Investors looking for long-term growth potential may consider Best Buy for its retail expertise, while those seeking stability and dividends may lean towards UnitedHealth Group for its healthcare focus.

Best Buy or UnitedHealth?

When comparing Best Buy 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 Best Buy 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. Best Buy has a dividend yield of 3.22%, while UnitedHealth has a dividend yield of 2.23%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Best Buy reports a 5-year dividend growth of 15.38% year and a payout ratio of 63.39%. 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 Best Buy P/E ratio at 14.82 and UnitedHealth's P/E ratio at 1.13. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Best Buy P/B ratio is 6.11 while UnitedHealth's P/B ratio is 0.17.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Best Buy has seen a 5-year revenue growth of 0.47%, while UnitedHealth's is 0.70%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Best Buy's ROE at 41.22% and UnitedHealth's ROE at 15.94%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $87.05 for Best Buy and C$24.40 for UnitedHealth. Over the past year, Best Buy's prices ranged from $69.29 to $103.71, with a yearly change of 49.68%. 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.