WallStSmart

UnitedHealth Group Incorporated (UNH)vsUnion Pacific Corporation (UNP)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

UnitedHealth Group Incorporated generates 1726% more annual revenue ($447.57B vs $24.51B). UNP leads profitability with a 29.1% profit margin vs 2.7%. UNH appears more attractively valued with a PEG of 0.98. UNP earns a higher WallStSmart Score of 60/100 (C).

UNH

Buy

59

out of 100

Grade: C

Growth: 5.3Profit: 5.0Value: 7.3Quality: 5.8
Piotroski: 4/9

UNP

Buy

60

out of 100

Grade: C

Growth: 3.3Profit: 9.5Value: 5.3Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

UNHSignificantly Overvalued (-202.7%)

Margin of Safety

-202.7%

Fair Value

$89.96

Current Price

$270.55

$180.59 premium

UndervaluedFair: $89.96Overvalued
UNPOvervalued (-13.1%)

Margin of Safety

-13.1%

Fair Value

$211.98

Current Price

$241.33

$29.35 premium

UndervaluedFair: $211.98Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

UNH3 strengths · Avg: 8.7/10
Market CapQuality
$250.15B10/10

Mega-cap, among the largest globally

PEG RatioValuation
0.988/10

Growing faster than its price suggests

Price/BookValuation
2.6x8/10

Reasonable price relative to book value

UNP5 strengths · Avg: 9.2/10
Return on EquityProfitability
40.4%10/10

Every $100 of equity generates 40 in profit

Operating MarginProfitability
40.9%10/10

Strong operational efficiency at 40.9%

Market CapQuality
$142.22B9/10

Large-cap with strong market position

Profit MarginProfitability
29.1%9/10

Keeps 29 of every $100 in revenue as profit

Free Cash FlowQuality
$1.23B8/10

Generating 1.2B in free cash flow

Areas to Watch

UNH3 concerns · Avg: 2.7/10
Profit MarginProfitability
2.7%3/10

2.7% margin — thin

Operating MarginProfitability
0.3%3/10

Operating margin of 0.3%

EPS GrowthGrowth
-99.9%2/10

Earnings declined 99.9%

UNP2 concerns · Avg: 2.0/10
PEG RatioValuation
2.692/10

Expensive relative to growth rate

Revenue GrowthGrowth
-0.6%2/10

Revenue declined 0.6%

Comparative Analysis Report

WallStSmart Research

Bull Case : UNH

The strongest argument for UNH centers on Market Cap, PEG Ratio, Price/Book. Revenue growth of 12.3% demonstrates continued momentum. PEG of 0.98 suggests the stock is reasonably priced for its growth.

Bull Case : UNP

The strongest argument for UNP centers on Return on Equity, Operating Margin, Market Cap. Profitability is solid with margins at 29.1% and operating margin at 40.9%.

Bear Case : UNH

The primary concerns for UNH are Profit Margin, Operating Margin, EPS Growth. Thin 2.7% margins leave little buffer for downturns.

Bear Case : UNP

The primary concerns for UNP are PEG Ratio, Revenue Growth.

Key Dynamics to Monitor

UNH profiles as a value stock while UNP is a declining play — different risk/reward profiles.

UNP carries more volatility with a beta of 0.95 — expect wider price swings.

UNH is growing revenue faster at 12.3% — sustainability is the question.

UNP generates stronger free cash flow (1.2B), providing more financial flexibility.

Bottom Line

UNP scores higher overall (60/100 vs 59/100), backed by strong 29.1% margins. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

UnitedHealth Group Incorporated

HEALTHCARE · HEALTHCARE PLANS · USA

UnitedHealth Group Incorporated is an American for-profit multinational managed healthcare and insurance company based in Minnetonka, Minnesota. It offers health care products and insurance services. In 2020, it was the second-largest healthcare company (behind CVS Health) by revenue with $257.1 billion, and the largest insurance company by net premiums. UnitedHealthcare revenues comprise 80% of the Group's overall revenue.

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Union Pacific Corporation

INDUSTRIALS · RAILROADS · USA

The Union Pacific Corporation (Union Pacific) is a publicly traded railroad holding company. It was incorporated in Utah in 1969 and is headquartered in Omaha, Nebraska. It is the parent company of the current, Delaware-registered, form of the Union Pacific Railroad.

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