UnitedHealth Group Incorporated (UNH)vsVertex Pharmaceuticals Inc (VRTX)
UNH
UnitedHealth Group Incorporated
$270.55
-0.64%
HEALTHCARE · Cap: $250.15B
VRTX
Vertex Pharmaceuticals Inc
$454.97
+1.42%
HEALTHCARE · Cap: $113.95B
Smart Verdict
WallStSmart Research — data-driven comparison
UnitedHealth Group Incorporated generates 3629% more annual revenue ($447.57B vs $12.00B). VRTX leads profitability with a 32.9% profit margin vs 2.7%. UNH appears more attractively valued with a PEG of 0.98. VRTX earns a higher WallStSmart Score of 66/100 (B-).
UNH
Buy59
out of 100
Grade: C
VRTX
Strong Buy66
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-202.7%
Fair Value
$89.96
Current Price
$270.55
$180.59 premium
Margin of Safety
+36.5%
Fair Value
$716.04
Current Price
$454.97
$261.07 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Growing faster than its price suggests
Reasonable price relative to book value
Keeps 33 of every $100 in revenue as profit
Strong operational efficiency at 39.6%
Safe zone — low bankruptcy risk
Large-cap with strong market position
Every $100 of equity generates 23 in profit
Conservative balance sheet, low leverage
Areas to Watch
2.7% margin — thin
Operating margin of 0.3%
Earnings declined 99.9%
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, 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 : VRTX
The strongest argument for VRTX centers on Profit Margin, Operating Margin, Altman Z-Score. Profitability is solid with margins at 32.9% and operating margin at 39.6%.
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 : 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 0.38 — expect wider price swings.
UNH is growing revenue faster at 12.3% — sustainability is the question.
VRTX generates stronger free cash flow (349M), providing more financial flexibility.
Bottom Line
VRTX scores higher overall (66/100 vs 59/100), backed by strong 32.9% margins. 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.
Compare with Other HEALTHCARE PLANS Stocks
Want to dig deeper into these stocks?