UnitedHealth Group Incorporated (UNH)vsVertex Pharmaceuticals Inc (VRTX)
UNH
UnitedHealth Group Incorporated
$379.98
+2.77%
HEALTHCARE · Cap: $335.78B
VRTX
Vertex Pharmaceuticals Inc
$429.82
+1.13%
HEALTHCARE · Cap: $107.87B
Smart Verdict
WallStSmart Research — data-driven comparison
UnitedHealth Group Incorporated generates 3581% more annual revenue ($449.71B vs $12.22B). VRTX leads profitability with a 35.5% profit margin vs 2.7%. UNH appears more attractively valued with a PEG of 1.27. VRTX earns a higher WallStSmart Score of 66/100 (B-).
UNH
Buy54
out of 100
Grade: C-
VRTX
Strong Buy66
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+42.2%
Fair Value
$639.72
Current Price
$379.98
$259.74 discount
Margin of Safety
+57.2%
Fair Value
$992.87
Current Price
$429.82
$563.05 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Generating 8.1B in free cash flow
Keeps 36 of every $100 in revenue as profit
Strong operational efficiency at 38.1%
Earnings expanding 61.4% YoY
Safe zone — low bankruptcy risk
Large-cap with strong market position
Every $100 of equity generates 24 in profit
Areas to Watch
Moderate valuation
2.0% revenue growth
0.7% earnings growth
2.7% margin — thin
Expensive relative to growth rate
Moderate valuation
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : UNH
The strongest argument for UNH centers on Market Cap, Free Cash Flow. PEG of 1.27 suggests the stock is reasonably priced for its growth.
Bull Case : VRTX
The strongest argument for VRTX centers on Profit Margin, Operating Margin, EPS Growth. Profitability is solid with margins at 35.5% and operating margin at 38.1%.
Bear Case : UNH
The primary concerns for UNH are P/E Ratio, Revenue Growth, EPS Growth. Thin 2.7% margins leave little buffer for downturns.
Bear Case : VRTX
The primary concerns for VRTX are PEG Ratio, P/E Ratio, Piotroski F-Score.
Key Dynamics to Monitor
UNH profiles as a value stock while VRTX is a mature play — different risk/reward profiles.
UNH carries more volatility with a beta of 0.65 — expect wider price swings.
VRTX is growing revenue faster at 7.8% — sustainability is the question.
UNH generates stronger free cash flow (8.1B), providing more financial flexibility.
Bottom Line
VRTX scores higher overall (66/100 vs 54/100), backed by strong 35.5% margins. UNH offers better value entry with a 42.2% margin of safety. Both earn "Strong 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.
Visit Website →Vertex Pharmaceuticals Inc
HEALTHCARE · BIOTECHNOLOGY · USA
Vertex Pharmaceuticals, Inc. is an American biopharmaceutical company based in Boston, Massachusetts.
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