ALC vs. UNH: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ALC and UNH, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
UNH’s market capitalization of 279.90 billion USD is significantly greater than ALC’s 43.42 billion USD, highlighting its more substantial market valuation.
ALC’s beta of 0.70 points to significantly higher volatility compared to UNH (beta: 0.45), suggesting ALC has greater potential for both gains and losses relative to market movements.
| Symbol | ALC | UNH |
|---|---|---|
| Company Name | Alcon Inc. | UnitedHealth Group Incorporated |
| Country | CH | US |
| Sector | Healthcare | Healthcare |
| Industry | Medical - Instruments & Supplies | Medical - Healthcare Plans |
| CEO | David J. Endicott | Stephen J. Hemsley |
| Price | 87.78 USD | 308.55 USD |
| Market Cap | 43.42 billion USD | 279.90 billion USD |
| Beta | 0.70 | 0.45 |
| Exchange | NYSE | NYSE |
| IPO Date | April 9, 2019 | October 17, 1984 |
| ADR | No | No |
Historical Performance
This chart compares the performance of ALC 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
ALC
6.95%
Medical - Instruments & Supplies Industry
- Max
- 26.65%
- Q3
- 13.00%
- Median
- 1.08%
- Q1
- -8.11%
- Min
- -38.20%
ALC’s Return on Equity of 6.95% is on par with the norm for the Medical - Instruments & Supplies industry, indicating its profitability relative to shareholder equity is typical for the sector.
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
ALC
4.39%
Medical - Instruments & Supplies Industry
- Max
- 20.14%
- Q3
- 7.36%
- Median
- 1.97%
- Q1
- -6.22%
- Min
- -20.00%
ALC’s Return on Invested Capital of 4.39% is in line with the norm for the Medical - Instruments & Supplies industry, reflecting a standard level of efficiency in generating profits from its capital base.
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
ALC
11.27%
Medical - Instruments & Supplies Industry
- Max
- 28.95%
- Q3
- 11.24%
- Median
- -2.83%
- Q1
- -12.85%
- Min
- -26.41%
A Net Profit Margin of 11.27% places ALC in the upper quartile for the Medical - Instruments & Supplies 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
ALC
15.22%
Medical - Instruments & Supplies Industry
- Max
- 32.10%
- Q3
- 16.03%
- Median
- 2.28%
- Q1
- -7.96%
- Min
- -26.84%
ALC’s Operating Profit Margin of 15.22% is around the midpoint for the Medical - Instruments & Supplies industry, indicating that its efficiency in managing core business operations is typical for the sector.
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 | ALC | UNH |
|---|---|---|
| Return on Equity (TTM) | 6.95% | 24.09% |
| Return on Assets (TTM) | 3.61% | 7.14% |
| Return on Invested Capital (TTM) | 4.39% | 13.21% |
| Net Profit Margin (TTM) | 11.27% | 5.43% |
| Operating Profit Margin (TTM) | 15.22% | 8.22% |
| Gross Profit Margin (TTM) | 55.55% | 21.48% |
Financial Strength
Current Ratio
ALC
2.70
Medical - Instruments & Supplies Industry
- Max
- 6.79
- Q3
- 4.57
- Median
- 2.64
- Q1
- 1.81
- Min
- 1.10
ALC’s Current Ratio of 2.70 aligns with the median group of the Medical - Instruments & Supplies industry, indicating that its short-term liquidity is in line with its sector peers.
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
ALC
0.24
Medical - Instruments & Supplies Industry
- Max
- 1.46
- Q3
- 0.74
- Median
- 0.41
- Q1
- 0.16
- Min
- 0.03
ALC’s Debt-to-Equity Ratio of 0.24 is typical for the Medical - Instruments & Supplies 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
ALC
7.72
Medical - Instruments & Supplies Industry
- Max
- 25.04
- Q3
- 8.80
- Median
- 3.66
- Q1
- -3.85
- Min
- -11.93
ALC’s Interest Coverage Ratio of 7.72 is positioned comfortably within the norm for the Medical - Instruments & Supplies industry, indicating a standard and healthy capacity to cover its interest payments.
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 | ALC | UNH |
|---|---|---|
| Current Ratio (TTM) | 2.70 | 0.85 |
| Quick Ratio (TTM) | 1.66 | 0.85 |
| Debt-to-Equity Ratio (TTM) | 0.24 | 0.86 |
| Debt-to-Asset Ratio (TTM) | 0.17 | 0.26 |
| Net Debt-to-EBITDA Ratio (TTM) | 1.54 | 1.57 |
| Interest Coverage Ratio (TTM) | 7.72 | 16.30 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ALC 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
ALC
0.38%
Medical - Instruments & Supplies Industry
- Max
- 4.02%
- Q3
- 0.38%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 0.38%, ALC offers a more attractive income stream than most of its peers in the Medical - Instruments & Supplies 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
ALC
11.23%
Medical - Instruments & Supplies Industry
- Max
- 76.77%
- Q3
- 11.37%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
ALC’s Dividend Payout Ratio of 11.23% is within the typical range for the Medical - Instruments & Supplies industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
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 | ALC | UNH |
|---|---|---|
| Dividend Yield (TTM) | 0.38% | 2.76% |
| Dividend Payout Ratio (TTM) | 11.23% | 34.90% |
Valuation
Price-to-Earnings Ratio
ALC
38.80
Medical - Instruments & Supplies Industry
- Max
- 45.65
- Q3
- 44.10
- Median
- 35.47
- Q1
- 29.60
- Min
- 21.65
ALC’s P/E Ratio of 38.80 is within the middle range for the Medical - Instruments & Supplies industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
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
ALC
2.54
Medical - Instruments & Supplies Industry
- Max
- 5.80
- Q3
- 3.68
- Median
- 2.56
- Q1
- 1.87
- Min
- 0.22
ALC’s Forward PEG Ratio of 2.54 is within the middle range of its peers in the Medical - Instruments & Supplies 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
ALC
4.37
Medical - Instruments & Supplies Industry
- Max
- 12.87
- Q3
- 6.95
- Median
- 3.45
- Q1
- 2.24
- Min
- 0.71
ALC’s P/S Ratio of 4.37 aligns with the market consensus for the Medical - Instruments & Supplies 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
ALC
1.98
Medical - Instruments & Supplies Industry
- Max
- 9.60
- Q3
- 5.48
- Median
- 3.37
- Q1
- 1.95
- Min
- 0.65
ALC’s P/B Ratio of 1.98 is within the conventional range for the Medical - Instruments & Supplies 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 | ALC | UNH |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 38.80 | 12.81 |
| Forward PEG Ratio (TTM) | 2.54 | 0.78 |
| Price-to-Sales Ratio (P/S, TTM) | 4.37 | 0.69 |
| Price-to-Book Ratio (P/B, TTM) | 1.98 | 2.98 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 25.24 | 11.26 |
| EV-to-EBITDA (TTM) | 19.18 | 10.28 |
| EV-to-Sales (TTM) | 4.75 | 0.81 |