ABT vs. UNH: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ABT and UNH, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
ABT’s market capitalization stands at 233.90 billion USD, while UNH’s is 279.90 billion USD, indicating their market valuations are broadly comparable.
ABT’s beta of 0.74 points to significantly higher volatility compared to UNH (beta: 0.45), suggesting ABT has greater potential for both gains and losses relative to market movements.
| Symbol | ABT | UNH |
|---|---|---|
| Company Name | Abbott Laboratories | UnitedHealth Group Incorporated |
| Country | US | US |
| Sector | Healthcare | Healthcare |
| Industry | Medical - Devices | Medical - Healthcare Plans |
| CEO | Robert B. Ford | Stephen J. Hemsley |
| Price | 134.44 USD | 308.55 USD |
| Market Cap | 233.90 billion USD | 279.90 billion USD |
| Beta | 0.74 | 0.45 |
| Exchange | NYSE | NYSE |
| IPO Date | March 17, 1980 | October 17, 1984 |
| ADR | No | No |
Historical Performance
This chart compares the performance of ABT and UNH by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.
Data is adjusted for dividends and splits.
Profitability
Return on Equity
ABT
30.76%
Medical - Devices Industry
- Max
- 49.04%
- Q3
- 9.53%
- Median
- -7.46%
- Q1
- -32.83%
- Min
- -82.64%
In the upper quartile for the Medical - Devices industry, ABT’s Return on Equity of 30.76% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
UNH
24.09%
Medical - Healthcare Plans Industry
- Max
- 13.94%
- Q3
- 13.62%
- Median
- 11.42%
- Q1
- 7.74%
- Min
- 6.98%
UNH’s Return on Equity of 24.09% is exceptionally high, placing it well beyond the typical range for the Medical - Healthcare Plans industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.
Return on Invested Capital
ABT
19.13%
Medical - Devices Industry
- Max
- 21.88%
- Q3
- 6.63%
- Median
- -1.11%
- Q1
- -21.08%
- Min
- -51.95%
In the upper quartile for the Medical - Devices industry, ABT’s Return on Invested Capital of 19.13% signifies a highly effective use of its capital to generate profits when compared to its peers.
UNH
13.21%
Medical - Healthcare Plans Industry
- Max
- 15.50%
- Q3
- 7.12%
- Median
- 5.48%
- Q1
- -3.47%
- Min
- -15.02%
In the upper quartile for the Medical - Healthcare Plans industry, UNH’s Return on Invested Capital of 13.21% signifies a highly effective use of its capital to generate profits when compared to its peers.
Net Profit Margin
ABT
31.89%
Medical - Devices Industry
- Max
- 44.80%
- Q3
- 9.77%
- Median
- -5.53%
- Q1
- -29.37%
- Min
- -87.68%
A Net Profit Margin of 31.89% places ABT in the upper quartile for the Medical - Devices industry, signifying strong profitability and more effective cost management than most of its peers.
UNH
5.43%
Medical - Healthcare Plans Industry
- Max
- 3.23%
- Q3
- 2.62%
- Median
- 1.70%
- Q1
- 1.27%
- Min
- 1.22%
UNH’s Net Profit Margin of 5.43% is exceptionally high, placing it well beyond the typical range for the Medical - Healthcare Plans industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.
Operating Profit Margin
ABT
16.97%
Medical - Devices Industry
- Max
- 30.13%
- Q3
- 13.12%
- Median
- 3.47%
- Q1
- -24.42%
- Min
- -80.56%
An Operating Profit Margin of 16.97% places ABT in the upper quartile for the Medical - Devices industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
UNH
8.22%
Medical - Healthcare Plans Industry
- Max
- 4.30%
- Q3
- 3.77%
- Median
- 2.61%
- Q1
- 1.60%
- Min
- -1.64%
UNH’s Operating Profit Margin of 8.22% is exceptionally high, placing it well above the typical range for the Medical - Healthcare Plans industry. This demonstrates outstanding efficiency in managing its core operations, which can be a result of strong pricing power or superior cost control.
Profitability at a Glance
| Symbol | ABT | UNH |
|---|---|---|
| Return on Equity (TTM) | 30.76% | 24.09% |
| Return on Assets (TTM) | 16.58% | 7.14% |
| Return on Invested Capital (TTM) | 19.13% | 13.21% |
| Net Profit Margin (TTM) | 31.89% | 5.43% |
| Operating Profit Margin (TTM) | 16.97% | 8.22% |
| Gross Profit Margin (TTM) | 55.89% | 21.48% |
Financial Strength
Current Ratio
ABT
1.78
Medical - Devices Industry
- Max
- 12.68
- Q3
- 6.30
- Median
- 4.05
- Q1
- 1.85
- Min
- 0.01
ABT’s Current Ratio of 1.78 falls into the lower quartile for the Medical - Devices industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
UNH
0.85
Medical - Healthcare Plans Industry
- Max
- 1.91
- Q3
- 1.63
- Median
- 1.43
- Q1
- 0.85
- Min
- 0.78
UNH’s Current Ratio of 0.85 aligns with the median group of the Medical - Healthcare Plans industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio
ABT
0.27
Medical - Devices Industry
- Max
- 2.34
- Q3
- 1.09
- Median
- 0.37
- Q1
- 0.08
- Min
- 0.00
ABT’s Debt-to-Equity Ratio of 0.27 is typical for the Medical - Devices industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
UNH
0.86
Medical - Healthcare Plans Industry
- Max
- 1.06
- Q3
- 0.86
- Median
- 0.75
- Q1
- 0.66
- Min
- 0.66
UNH’s Debt-to-Equity Ratio of 0.86 is typical for the Medical - Healthcare Plans industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
Interest Coverage Ratio
ABT
15.39
Medical - Devices Industry
- Max
- 18.18
- Q3
- 7.53
- Median
- 0.85
- Q1
- -9.80
- Min
- -33.94
ABT’s Interest Coverage Ratio of 15.39 is in the upper quartile for the Medical - Devices industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
UNH
16.30
Medical - Healthcare Plans Industry
- Max
- 6.23
- Q3
- 6.23
- Median
- 5.19
- Q1
- 4.64
- Min
- 3.18
With an Interest Coverage Ratio of 16.30, UNH demonstrates a superior capacity to service its debt, placing it well above the typical range for the Medical - Healthcare Plans industry. This stems from either robust earnings or a conservative debt load.
Financial Strength at a Glance
| Symbol | ABT | UNH |
|---|---|---|
| Current Ratio (TTM) | 1.78 | 0.85 |
| Quick Ratio (TTM) | 1.27 | 0.85 |
| Debt-to-Equity Ratio (TTM) | 0.27 | 0.86 |
| Debt-to-Asset Ratio (TTM) | 0.16 | 0.26 |
| Net Debt-to-EBITDA Ratio (TTM) | 0.60 | 1.57 |
| Interest Coverage Ratio (TTM) | 15.39 | 16.30 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ABT and UNH. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
ABT
1.70%
Medical - Devices Industry
- Max
- 3.57%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 1.70%, ABT offers a more attractive income stream than most of its peers in the Medical - Devices industry, signaling a strong commitment to shareholder returns.
UNH
2.76%
Medical - Healthcare Plans Industry
- Max
- 3.88%
- Q3
- 1.78%
- Median
- 0.73%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 2.76%, UNH offers a more attractive income stream than most of its peers in the Medical - Healthcare Plans industry, signaling a strong commitment to shareholder returns.
Dividend Payout Ratio
ABT
28.92%
Medical - Devices Industry
- Max
- 102.12%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
ABT’s Dividend Payout Ratio of 28.92% is in the upper quartile for the Medical - Devices industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.
UNH
34.90%
Medical - Healthcare Plans Industry
- Max
- 63.88%
- Q3
- 29.91%
- Median
- 12.57%
- Q1
- 0.00%
- Min
- 0.00%
UNH’s Dividend Payout Ratio of 34.90% is in the upper quartile for the Medical - Healthcare Plans industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.
Dividend at a Glance
| Symbol | ABT | UNH |
|---|---|---|
| Dividend Yield (TTM) | 1.70% | 2.76% |
| Dividend Payout Ratio (TTM) | 28.92% | 34.90% |
Valuation
Price-to-Earnings Ratio
ABT
17.40
Medical - Devices Industry
- Max
- 90.56
- Q3
- 56.92
- Median
- 43.19
- Q1
- 21.79
- Min
- 5.55
In the lower quartile for the Medical - Devices industry, ABT’s P/E Ratio of 17.40 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.
UNH
12.81
Medical - Healthcare Plans Industry
- Max
- 18.17
- Q3
- 17.32
- Median
- 15.48
- Q1
- 13.55
- Min
- 12.84
UNH’s P/E Ratio of 12.81 is below the typical range for the Medical - Healthcare Plans industry. This may indicate that the stock is potentially undervalued, or it could reflect market concerns about the company’s future prospects.
Forward P/E to Growth Ratio
ABT
1.73
Medical - Devices Industry
- Max
- 6.56
- Q3
- 3.52
- Median
- 2.22
- Q1
- 0.55
- Min
- 0.03
ABT’s Forward PEG Ratio of 1.73 is within the middle range of its peers in the Medical - Devices industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.
UNH
0.78
Medical - Healthcare Plans Industry
- Max
- 1.41
- Q3
- 1.09
- Median
- 0.85
- Q1
- 0.79
- Min
- 0.60
In the lower quartile for the Medical - Healthcare Plans industry, UNH’s Forward PEG Ratio of 0.78 is a positive indicator. It suggests that the stock may be attractively valued relative to its expected earnings growth.
Price-to-Sales Ratio
ABT
5.52
Medical - Devices Industry
- Max
- 15.74
- Q3
- 8.12
- Median
- 3.40
- Q1
- 2.37
- Min
- 0.42
ABT’s P/S Ratio of 5.52 aligns with the market consensus for the Medical - Devices industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
UNH
0.69
Medical - Healthcare Plans Industry
- Max
- 0.94
- Q3
- 0.64
- Median
- 0.43
- Q1
- 0.27
- Min
- 0.16
UNH’s P/S Ratio of 0.69 is in the upper echelon for the Medical - Healthcare Plans industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
Price-to-Book Ratio
ABT
4.81
Medical - Devices Industry
- Max
- 16.65
- Q3
- 8.03
- Median
- 3.73
- Q1
- 1.92
- Min
- 0.65
ABT’s P/B Ratio of 4.81 is within the conventional range for the Medical - Devices industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
UNH
2.98
Medical - Healthcare Plans Industry
- Max
- 4.08
- Q3
- 3.83
- Median
- 2.63
- Q1
- 1.74
- Min
- 0.96
UNH’s P/B Ratio of 2.98 is within the conventional range for the Medical - Healthcare Plans industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
Valuation at a Glance
| Symbol | ABT | UNH |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 17.40 | 12.81 |
| Forward PEG Ratio (TTM) | 1.73 | 0.78 |
| Price-to-Sales Ratio (P/S, TTM) | 5.52 | 0.69 |
| Price-to-Book Ratio (P/B, TTM) | 4.81 | 2.98 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 35.14 | 11.26 |
| EV-to-EBITDA (TTM) | 21.49 | 10.28 |
| EV-to-Sales (TTM) | 5.68 | 0.81 |