Pfizer vs UnitedHealth Which Outperforms?

Pfizer and UnitedHealth are two prominent companies in the healthcare sector, each with their own unique strengths and investment appeal. Pfizer, a pharmaceutical giant, is known for its diverse product portfolio and strong research and development capabilities. On the other hand, UnitedHealth is a leading health insurance provider with growth potential driven by the increasing demand for healthcare services. Investors looking to capitalize on the healthcare industry may consider evaluating the performance and prospects of these two stocks.

Pfizer or UnitedHealth?

When comparing Pfizer 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 Pfizer 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. Pfizer has a dividend yield of 6.41%, while UnitedHealth has a dividend yield of 2.29%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Pfizer reports a 5-year dividend growth of 4.08% year and a payout ratio of 221.76%. On the other hand, UnitedHealth reports a 5-year dividend growth of 0.00% year and a payout ratio of 50.63%.

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 Pfizer P/E ratio at 34.84 and UnitedHealth's P/E ratio at 1.39. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Pfizer P/B ratio is 1.61 while UnitedHealth's P/B ratio is 0.22.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Pfizer has seen a 5-year revenue growth of 0.13%, while UnitedHealth's is 0.71%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Pfizer's ROE at 4.72% and UnitedHealth's ROE at 15.92%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $25.95 for Pfizer and C$29.34 for UnitedHealth. Over the past year, Pfizer's prices ranged from $25.20 to $31.54, with a yearly change of 25.16%. 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.