UNITED vs Humana

UnitedHealth Group and Humana are two of the leading healthcare companies in the United States, both offering a range of health insurance and healthcare services. UnitedHealth Group is a larger company with a more diverse range of offerings, while Humana has a focus on Medicare Advantage plans and wellness programs. Both companies have seen strong performances in the stock market in recent years, with UnitedHealth Group often being seen as a safer investment, while Humana may offer more growth potential for investors willing to take on slightly more risk.

UNITED or Humana?

When comparing UNITED and Humana, 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 UNITED and Humana.

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. UNITED has a dividend yield of 4.76%, while Humana has a dividend yield of 1.37%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. UNITED reports a 5-year dividend growth of 6.43% year and a payout ratio of 0.00%. On the other hand, Humana reports a 5-year dividend growth of 12.10% year and a payout ratio of 25.48%.

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 UNITED P/E ratio at 49.13 and Humana's P/E ratio at 18.13. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. UNITED P/B ratio is 1.35 while Humana's P/B ratio is 1.86.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, UNITED has seen a 5-year revenue growth of -0.46%, while Humana's is 1.07%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with UNITED's ROE at 2.56% and Humana's ROE at 10.37%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥759.00 for UNITED and $251.24 for Humana. Over the past year, UNITED's prices ranged from ¥670.00 to ¥953.00, with a yearly change of 42.24%. Humana's prices fluctuated between $213.31 and $530.54, with a yearly change of 148.72%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.