Five Below vs UnitedHealth Which Is Superior?

Five Below and UnitedHealth are two distinct companies operating in completely different sectors of the market. Five Below is a discount retailer that caters to the younger demographic, selling products for $5 or less, while UnitedHealth is a giant in the healthcare industry, offering a wide range of health insurance and related services. Both companies have shown strong performance in the market, but their stocks appeal to different types of investors, with Five Below appealing to those seeking growth potential and UnitedHealth appealing to those seeking stability and dividend income.

Five Below or UnitedHealth?

When comparing Five Below 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 Five Below 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. Five Below has a dividend yield of -%, while UnitedHealth has a dividend yield of 2.33%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Five Below 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 Five Below P/E ratio at 16.53 and UnitedHealth's P/E ratio at 1.34. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Five Below P/B ratio is 2.89 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, Five Below has seen a 5-year revenue growth of 1.29%, while UnitedHealth's is 0.71%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Five Below's ROE at 18.28% and UnitedHealth's ROE at 15.94%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $82.75 for Five Below and C$28.81 for UnitedHealth. Over the past year, Five Below's prices ranged from $64.87 to $216.18, with a yearly change of 233.25%. 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.