FedEx vs UnitedHealth Which Is More Attractive?

FedEx and UnitedHealth Group are two leading companies in their respective industries. FedEx is a global logistics company that specializes in shipping and courier services, while UnitedHealth Group is a healthcare company that offers insurance and health services to customers. Both companies have seen significant growth in their stock prices in recent years, with FedEx benefiting from the rise of e-commerce and UnitedHealth Group's strong position in the healthcare industry. Investors looking for stable and profitable options may find both stocks attractive options for their portfolios.

FedEx or UnitedHealth?

When comparing FedEx 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 FedEx 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. FedEx has a dividend yield of 1.91%, while UnitedHealth has a dividend yield of 2.24%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. FedEx reports a 5-year dividend growth of 15.01% year and a payout ratio of 31.63%. 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 FedEx P/E ratio at 17.32 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. FedEx P/B ratio is 2.58 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, FedEx has seen a 5-year revenue growth of 0.45%, while UnitedHealth's is 0.70%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with FedEx's ROE at 15.00% and UnitedHealth's ROE at 15.94%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $281.85 for FedEx and C$24.40 for UnitedHealth. Over the past year, FedEx's prices ranged from $234.45 to $313.84, with a yearly change of 33.86%. 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.