UnitedHealth Group (NYSE:UNH – Get Free Report) and Nutex Health (NASDAQ:NUTX – Get Free Report) are both healthcare companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, valuation, earnings, analyst recommendations, profitability and risk.
Risk & Volatility
UnitedHealth Group has a beta of 0.6, meaning that its share price is 40% less volatile than the S&P 500. Comparatively, Nutex Health has a beta of 0.55, meaning that its share price is 45% less volatile than the S&P 500.
Institutional & Insider Ownership
87.9% of UnitedHealth Group shares are held by institutional investors. Comparatively, 5.3% of Nutex Health shares are held by institutional investors. 0.2% of UnitedHealth Group shares are held by company insiders. Comparatively, 44.7% of Nutex Health shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| UnitedHealth Group | 3.14% | 16.53% | 5.43% |
| Nutex Health | 21.25% | 39.74% | 18.91% |
Earnings and Valuation
This table compares UnitedHealth Group and Nutex Health”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| UnitedHealth Group | $447.57 billion | 0.75 | $12.06 billion | $15.54 | 23.92 |
| Nutex Health | $875.26 million | 1.69 | $70.79 million | $25.47 | 8.50 |
UnitedHealth Group has higher revenue and earnings than Nutex Health. Nutex Health is trading at a lower price-to-earnings ratio than UnitedHealth Group, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent ratings for UnitedHealth Group and Nutex Health, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| UnitedHealth Group | 0 | 8 | 20 | 0 | 2.71 |
| Nutex Health | 0 | 1 | 2 | 1 | 3.00 |
UnitedHealth Group currently has a consensus target price of $465.75, indicating a potential upside of 25.29%. Nutex Health has a consensus target price of $317.50, indicating a potential upside of 46.65%. Given Nutex Health’s stronger consensus rating and higher possible upside, analysts clearly believe Nutex Health is more favorable than UnitedHealth Group.
Summary
Nutex Health beats UnitedHealth Group on 9 of the 15 factors compared between the two stocks.
About UnitedHealth Group
UnitedHealth Group Incorporated operates as a diversified health care company in the United States. The company operates through four segments: UnitedHealthcare, Optum Health, Optum Insight, and Optum Rx. The UnitedHealthcare segment offers consumer-oriented health benefit plans and services for national employers, public sector employers, mid-sized employers, small businesses, and individuals; health care coverage, and health and well-being services to individuals age 50 and older addressing their needs; Medicaid plans, children's health insurance and health care programs; and health and dental benefits, and hospital and clinical services, as well as health care benefits products and services to state programs caring for the economically disadvantaged, medically underserved, and those without the benefit of employer-funded health care coverage. The Optum Health segment provides care delivery, care management, wellness and consumer engagement, and health financial services patients, consumers, care delivery systems, providers, employers, payers, and public-sector entities. The Optum Insight segment offers software and information products, advisory consulting arrangements, and managed services outsourcing contracts to hospital systems, physicians, health plans, governments, life sciences companies, and other organizations. The Optum Rx segment provides pharmacy care services and programs, including retail network contracting, home delivery, specialty and community health pharmacy services, infusion, and purchasing and clinical capabilities, as well as develops programs in the areas of step therapy, formulary management, drug adherence, and disease/drug therapy management. UnitedHealth Group Incorporated was founded in 1974 and is based in Minnetonka, Minnesota.
About Nutex Health
Nutex Health Inc. operates as a physician-led, healthcare services, and operations company. It operates through three segments: Hospital, Population Health Management (PHM), and Real Estate. The PHM segment establishes and operates independent physician associations; and offers a cloud-based platform for healthcare organizations to provide value-based care and population health management. The Real Estate segment owns and owns and leases land and hospital building. The Hospital segment develops and operates a network of micro-hospitals, specialty hospitals and hospital outpatient departments which offers 24/7 care. It also provides operational and managerial services, including management, billing, collections, human resources and recruiting, legal, accounting, and marketing. In addition, the company offers healthcare services, including emergency room care, inpatient care, and behavioral health, as well as onsite imaging, such as CT scan, X-ray, MRI, ultrasound, etc.; certified and accredited laboratories; and onsite inpatient pharmacies. The company was founded in 2011 and is based in Houston, Texas.
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