Canadian Tire vs UnitedHealth Which Performs Better?

Canadian Tire Corporation Limited and UnitedHealth Group Incorporated are two leading companies in their respective industries. Canadian Tire is a retail and automotive service company that has a strong presence in Canada, while UnitedHealth is a multinational healthcare company based in the United States. Both companies have seen steady growth in their stock prices over the years, with Canadian Tire benefiting from the strong Canadian economy and UnitedHealth from the growing demand for healthcare services. Investors looking to diversify their portfolio may consider these two stocks for their long-term growth potential.

Canadian Tire or UnitedHealth?

When comparing Canadian Tire 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 Canadian Tire 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. Canadian Tire has a dividend yield of 4.19%, while UnitedHealth has a dividend yield of 2.4%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Canadian Tire reports a 5-year dividend growth of 11.12% year and a payout ratio of 55.13%. 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 Canadian Tire P/E ratio at 13.04 and UnitedHealth's P/E ratio at 1.30. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Canadian Tire P/B ratio is 1.48 while UnitedHealth's P/B ratio is 0.20.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Canadian Tire has seen a 5-year revenue growth of 0.36%, while UnitedHealth's is 0.70%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Canadian Tire's ROE at 11.54% and UnitedHealth's ROE at 15.94%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $107.78 for Canadian Tire and C$28.15 for UnitedHealth. Over the past year, Canadian Tire's prices ranged from $91.50 to $120.47, with a yearly change of 31.66%. 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.