CVS Health Corporation (CVS) vs UnitedHealth Group Incorporated (UNH)

CVS Health Corporation and UnitedHealth Group Incorporated are both Healthcare Plans companies. UnitedHealth Group Incorporated is the larger, with a market value of $336.8B against $108.5B — 3.1× the size. CVS Health Corporation trades at the lower P/E: 23.3× against 24.2×. CVS Health Corporation grew revenue faster over the last twelve months: 7.36% against 6.46%. UnitedHealth Group Incorporated has the higher net margin (3.14% vs 1.18%) and the higher return on invested capital (9.50% vs 4.07%). Both pay a dividend; CVS Health Corporation yields more (3.30% vs 1.53%). Across the 23 metrics below, CVS Health Corporation leads on 12 and UnitedHealth Group Incorporated on 11.

Valuation

Metric CVS UNH Healthcare Plans median
P/E 23.27 24.23 23.75
P/S 0.27 0.75 0.40
P/B 1.43 3.25 2.48
Price to free cash flow 9.70 14.38 11.15
EV/EBITDA 8.71 14.55 10.94
EV/Sales 0.39 0.84 0.37
Earnings yield 4.30% 4.13% 3.25%
Free cash flow yield 10.31% 6.95% 8.15%

Profitability

Metric CVS UNH Healthcare Plans median
Gross margin 44.49% 19.51% 19.04%
Operating margin 2.00% 4.82% 1.93%
Net margin 1.18% 3.14% 1.04%
Free cash flow margin 2.83% 5.25% 3.18%
Return on equity 6.21% 13.78% 12.48%
Return on assets 1.91% 4.57% 2.98%
Return on invested capital 4.07% 9.50% 2.04%

Growth

Metric CVS UNH Healthcare Plans median
Revenue growth (TTM) 7.36% 6.46% 7.57%
EPS growth (last fiscal year) (62.02%) (14.70%) —
Revenue growth, 5-year CAGR 8.39% 11.72% 11.88%
Net income growth, 5-year CAGR (24.44%) (4.78%) 0.00%

Health

Metric CVS UNH Healthcare Plans median
Debt to equity 0.77 0.67 0.70
Current ratio 0.87 0.78 1.32
Net debt to EBITDA 3.60 1.89 0.05

Dividend

Metric CVS UNH Healthcare Plans median
Dividend yield 3.30% 1.53% 1.53%
Payout ratio 1.05 0.31 0.00

Size

Metric CVS UNH Healthcare Plans median
Market cap 108.46b 336.83b 20.34b

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