Seek Returns logo

AMD vs. UNH: A Head-to-Head Stock Comparison

Updated on

Here’s a clear look at AMD and UNH, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Overview

AMD’s market capitalization stands at 223.61 billion USD, while UNH’s is 279.90 billion USD, indicating their market valuations are broadly comparable.

AMD’s beta of 1.99 points to significantly higher volatility compared to UNH (beta: 0.45), suggesting AMD has greater potential for both gains and losses relative to market movements.

SymbolAMDUNH
Company NameAdvanced Micro Devices, Inc.UnitedHealth Group Incorporated
CountryUSUS
SectorTechnologyHealthcare
IndustrySemiconductorsMedical - Healthcare Plans
CEOLisa T. SuStephen J. Hemsley
Price137.91 USD308.55 USD
Market Cap223.61 billion USD279.90 billion USD
Beta1.990.45
ExchangeNASDAQNYSE
IPO DateMarch 17, 1980October 17, 1984
ADRNoNo

Historical Performance

This chart compares the performance of AMD 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.

AMD vs. UNH: Growth of a $10,000 investment over the past one year.

Profitability

Return on Equity

AMD

3.89%

Semiconductors Industry

Max
41.84%
Q3
15.81%
Median
6.31%
Q1
-5.54%
Min
-30.12%

AMD’s Return on Equity of 3.89% is on par with the norm for the Semiconductors 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.

AMD vs. UNH: A comparison of their ROE against their respective Semiconductors and Medical - Healthcare Plans industry benchmarks.

Return on Invested Capital

AMD

3.29%

Semiconductors Industry

Max
30.91%
Q3
11.34%
Median
4.08%
Q1
-2.17%
Min
-19.59%

AMD’s Return on Invested Capital of 3.29% is in line with the norm for the Semiconductors 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.

AMD vs. UNH: A comparison of their ROIC against their respective Semiconductors and Medical - Healthcare Plans industry benchmarks.

Net Profit Margin

AMD

8.03%

Semiconductors Industry

Max
51.69%
Q3
19.67%
Median
8.56%
Q1
-5.44%
Min
-38.60%

AMD’s Net Profit Margin of 8.03% is aligned with the median group of its peers in the Semiconductors industry. This indicates its ability to convert revenue into profit is typical for the sector.

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.

AMD vs. UNH: A comparison of their Net Profit Margin against their respective Semiconductors and Medical - Healthcare Plans industry benchmarks.

Operating Profit Margin

AMD

9.62%

Semiconductors Industry

Max
58.03%
Q3
22.12%
Median
8.40%
Q1
-3.73%
Min
-36.14%

AMD’s Operating Profit Margin of 9.62% is around the midpoint for the Semiconductors 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.

AMD vs. UNH: A comparison of their Operating Margin against their respective Semiconductors and Medical - Healthcare Plans industry benchmarks.

Profitability at a Glance

SymbolAMDUNH
Return on Equity (TTM)3.89%24.09%
Return on Assets (TTM)3.11%7.14%
Return on Invested Capital (TTM)3.29%13.21%
Net Profit Margin (TTM)8.03%5.43%
Operating Profit Margin (TTM)9.62%8.22%
Gross Profit Margin (TTM)50.09%21.48%

Financial Strength

Current Ratio

AMD

2.80

Semiconductors Industry

Max
9.10
Q3
5.23
Median
3.09
Q1
2.49
Min
1.02

AMD’s Current Ratio of 2.80 aligns with the median group of the Semiconductors 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.

AMD vs. UNH: A comparison of their Current Ratio against their respective Semiconductors and Medical - Healthcare Plans industry benchmarks.

Debt-to-Equity Ratio

AMD

0.08

Semiconductors Industry

Max
0.97
Q3
0.46
Median
0.21
Q1
0.05
Min
0.00

AMD’s Debt-to-Equity Ratio of 0.08 is typical for the Semiconductors 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.

AMD vs. UNH: A comparison of their D/E Ratio against their respective Semiconductors and Medical - Healthcare Plans industry benchmarks.

Interest Coverage Ratio

AMD

30.69

Semiconductors Industry

Max
36.25
Q3
29.12
Median
7.01
Q1
-1.22
Min
-18.18

AMD’s Interest Coverage Ratio of 30.69 is in the upper quartile for the Semiconductors 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.

AMD vs. UNH: A comparison of their Interest Coverage against their respective Semiconductors and Medical - Healthcare Plans industry benchmarks.

Financial Strength at a Glance

SymbolAMDUNH
Current Ratio (TTM)2.800.85
Quick Ratio (TTM)1.970.85
Debt-to-Equity Ratio (TTM)0.080.86
Debt-to-Asset Ratio (TTM)0.070.26
Net Debt-to-EBITDA Ratio (TTM)-0.221.57
Interest Coverage Ratio (TTM)30.6916.30

Growth

The following charts compare key year-over-year (YoY) growth metrics for AMD and UNH. These metrics are based on the companies’ annual financial reports.

Revenue Growth

AMD vs. UNH: A comparison of their annual year-over-year Revenue Growth.

Earnings Per Share (EPS) Growth

AMD vs. UNH: A comparison of their annual year-over-year Earnings Per Share (EPS) Growth.

Free Cash Flow Growth

AMD vs. UNH: A comparison of their annual year-over-year Free Cash Flow Growth.

Dividend

Dividend Yield

AMD

0.00%

Semiconductors Industry

Max
6.48%
Q3
0.93%
Median
0.00%
Q1
0.00%
Min
0.00%

AMD currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

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.

AMD vs. UNH: A comparison of their Dividend Yield against their respective Semiconductors and Medical - Healthcare Plans industry benchmarks.

Dividend Payout Ratio

AMD

0.00%

Semiconductors Industry

Max
204.29%
Q3
31.85%
Median
0.00%
Q1
0.00%
Min
0.00%

AMD has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

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.

AMD vs. UNH: A comparison of their Payout Ratio against their respective Semiconductors and Medical - Healthcare Plans industry benchmarks.

Dividend at a Glance

SymbolAMDUNH
Dividend Yield (TTM)0.00%2.76%
Dividend Payout Ratio (TTM)0.00%34.90%

Valuation

Price-to-Earnings Ratio

AMD

100.32

Semiconductors Industry

Max
86.15
Q3
47.38
Median
27.87
Q1
18.89
Min
4.73

At 100.32, AMD’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Semiconductors industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

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.

AMD vs. UNH: A comparison of their P/E Ratio against their respective Semiconductors and Medical - Healthcare Plans industry benchmarks.

Forward P/E to Growth Ratio

AMD

2.56

Semiconductors Industry

Max
4.73
Q3
2.80
Median
1.11
Q1
0.68
Min
0.01

The Forward PEG Ratio is often not a primary valuation metric in the Semiconductors industry.

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.

AMD vs. UNH: A comparison of their Forward PEG Ratio against their respective Semiconductors and Medical - Healthcare Plans industry benchmarks.

Price-to-Sales Ratio

AMD

8.06

Semiconductors Industry

Max
21.96
Q3
10.21
Median
4.45
Q1
2.32
Min
0.48

AMD’s P/S Ratio of 8.06 aligns with the market consensus for the Semiconductors 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.

AMD vs. UNH: A comparison of their P/S Ratio against their respective Semiconductors and Medical - Healthcare Plans industry benchmarks.

Price-to-Book Ratio

AMD

3.86

Semiconductors Industry

Max
13.12
Q3
6.49
Median
3.31
Q1
1.74
Min
0.23

AMD’s P/B Ratio of 3.86 is within the conventional range for the Semiconductors 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.

AMD vs. UNH: A comparison of their P/B Ratio against their respective Semiconductors and Medical - Healthcare Plans industry benchmarks.

Valuation at a Glance

SymbolAMDUNH
Price-to-Earnings Ratio (P/E, TTM)100.3212.81
Forward PEG Ratio (TTM)2.560.78
Price-to-Sales Ratio (P/S, TTM)8.060.69
Price-to-Book Ratio (P/B, TTM)3.862.98
Price-to-Free Cash Flow Ratio (P/FCF, TTM)81.2211.26
EV-to-EBITDA (TTM)37.2210.28
EV-to-Sales (TTM)8.010.81