Expedia vs UnitedHealth Which Should You Buy?

Expedia Group and UnitedHealth Group are two leading companies in the travel and healthcare sectors, respectively. Expedia is a global online travel agency and technology company, while UnitedHealth is a diversified healthcare organization offering a range of insurance and health services. Both companies have experienced growth in recent years, but face unique challenges and opportunities within their industries. Investors considering these stocks should carefully evaluate the competitive landscape, financial performance, and future growth potential of each company.

Expedia or UnitedHealth?

When comparing Expedia 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 Expedia 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. Expedia has a dividend yield of -%, while UnitedHealth has a dividend yield of 2.23%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Expedia 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 Expedia P/E ratio at 22.25 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. Expedia P/B ratio is 17.96 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, Expedia has seen a 5-year revenue growth of 0.18%, while UnitedHealth's is 0.70%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Expedia's ROE at 92.08% and UnitedHealth's ROE at 15.94%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $182.24 for Expedia and C$24.40 for UnitedHealth. Over the past year, Expedia's prices ranged from $107.25 to $192.34, with a yearly change of 79.34%. 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.