NOW vs. UNH: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at NOW and UNH, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | NOW | UNH |
|---|---|---|
| Company Name | ServiceNow, Inc. | UnitedHealth Group Incorporated |
| Country | United States | United States |
| GICS Sector | Information Technology | Health Care |
| GICS Industry | Software | Health Care Providers & Services |
| Market Capitalization | 184.74 billion USD | 278.42 billion USD |
| Exchange | NYSE | NYSE |
| Listing Date | June 29, 2012 | October 17, 1984 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of NOW 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.
Historical Performance at a Glance
| Symbol | NOW | UNH |
|---|---|---|
| 5-Day Price Return | 4.63% | -0.35% |
| 13-Week Price Return | -13.21% | 1.47% |
| 26-Week Price Return | -10.03% | -38.61% |
| 52-Week Price Return | 6.89% | -46.82% |
| Month-to-Date Return | -5.61% | 23.18% |
| Year-to-Date Return | -16.02% | -39.23% |
| 10-Day Avg. Volume | 2.27M | 24.36M |
| 3-Month Avg. Volume | 1.60M | 18.87M |
| 3-Month Volatility | 26.69% | 45.45% |
| Beta | 0.94 | 0.46 |
Profitability
Return on Equity (TTM)
NOW
16.62%
Software Industry
- Max
- 59.01%
- Q3
- 21.98%
- Median
- 7.15%
- Q1
- -11.12%
- Min
- -51.24%
NOW’s Return on Equity of 16.62% is on par with the norm for the Software industry, indicating its profitability relative to shareholder equity is typical for the sector.
UNH
22.26%
Health Care Providers & Services Industry
- Max
- 26.03%
- Q3
- 13.74%
- Median
- 8.26%
- Q1
- 4.13%
- Min
- -3.62%
In the upper quartile for the Health Care Providers & Services industry, UNH’s Return on Equity of 22.26% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
Net Profit Margin (TTM)
NOW
13.78%
Software Industry
- Max
- 48.14%
- Q3
- 18.23%
- Median
- 5.60%
- Q1
- -9.22%
- Min
- -49.36%
NOW’s Net Profit Margin of 13.78% is aligned with the median group of its peers in the Software industry. This indicates its ability to convert revenue into profit is typical for the sector.
UNH
5.04%
Health Care Providers & Services Industry
- Max
- 12.40%
- Q3
- 5.93%
- Median
- 1.96%
- Q1
- 0.93%
- Min
- -6.10%
UNH’s Net Profit Margin of 5.04% is aligned with the median group of its peers in the Health Care Providers & Services industry. This indicates its ability to convert revenue into profit is typical for the sector.
Operating Profit Margin (TTM)
NOW
13.28%
Software Industry
- Max
- 57.34%
- Q3
- 20.60%
- Median
- 7.84%
- Q1
- -8.72%
- Min
- -51.37%
NOW’s Operating Profit Margin of 13.28% is around the midpoint for the Software industry, indicating that its efficiency in managing core business operations is typical for the sector.
UNH
7.26%
Health Care Providers & Services Industry
- Max
- 19.05%
- Q3
- 10.21%
- Median
- 4.22%
- Q1
- 1.98%
- Min
- -4.27%
UNH’s Operating Profit Margin of 7.26% is around the midpoint for the Health Care Providers & Services industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | NOW | UNH |
|---|---|---|
| Return on Equity (TTM) | 16.62% | 22.26% |
| Return on Assets (TTM) | 8.12% | 7.01% |
| Net Profit Margin (TTM) | 13.78% | 5.04% |
| Operating Profit Margin (TTM) | 13.28% | 7.26% |
| Gross Profit Margin (TTM) | 78.52% | -- |
Financial Strength
Current Ratio (MRQ)
NOW
1.09
Software Industry
- Max
- 3.83
- Q3
- 2.31
- Median
- 1.45
- Q1
- 1.03
- Min
- 0.24
NOW’s Current Ratio of 1.09 aligns with the median group of the Software industry, indicating that its short-term liquidity is in line with its sector peers.
UNH
0.81
Health Care Providers & Services Industry
- Max
- 2.01
- Q3
- 1.49
- Median
- 1.30
- Q1
- 0.94
- Min
- 0.17
UNH’s Current Ratio of 0.81 falls into the lower quartile for the Health Care Providers & Services industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
Debt-to-Equity Ratio (MRQ)
NOW
0.14
Software Industry
- Max
- 2.14
- Q3
- 0.90
- Median
- 0.29
- Q1
- 0.00
- Min
- 0.00
NOW’s Debt-to-Equity Ratio of 0.14 is typical for the Software industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
UNH
0.79
Health Care Providers & Services Industry
- Max
- 2.17
- Q3
- 1.18
- Median
- 0.74
- Q1
- 0.45
- Min
- 0.00
UNH’s Debt-to-Equity Ratio of 0.79 is typical for the Health Care Providers & Services 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 (TTM)
NOW
32.13
Software Industry
- Max
- 67.02
- Q3
- 19.86
- Median
- 0.70
- Q1
- -12.50
- Min
- -53.00
NOW’s Interest Coverage Ratio of 32.13 is in the upper quartile for the Software industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
UNH
6.14
Health Care Providers & Services Industry
- Max
- 14.47
- Q3
- 7.15
- Median
- 5.45
- Q1
- 2.04
- Min
- -4.44
UNH’s Interest Coverage Ratio of 6.14 is positioned comfortably within the norm for the Health Care Providers & Services industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | NOW | UNH |
|---|---|---|
| Current Ratio (MRQ) | 1.09 | 0.81 |
| Quick Ratio (MRQ) | 0.99 | 0.60 |
| Debt-to-Equity Ratio (MRQ) | 0.14 | 0.79 |
| Interest Coverage Ratio (TTM) | 32.13 | 6.14 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
NOW
0.00%
Software Industry
- Max
- 0.08%
- Q3
- 0.03%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
NOW 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
2.88%
Health Care Providers & Services Industry
- Max
- 5.38%
- Q3
- 2.22%
- Median
- 0.55%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 2.88%, UNH offers a more attractive income stream than most of its peers in the Health Care Providers & Services industry, signaling a strong commitment to shareholder returns.
Dividend Payout Ratio (TTM)
NOW
0.00%
Software Industry
- Max
- 1.32%
- Q3
- 0.53%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
NOW 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
36.54%
Health Care Providers & Services Industry
- Max
- 186.69%
- Q3
- 74.82%
- Median
- 26.76%
- Q1
- 0.00%
- Min
- 0.00%
UNH’s Dividend Payout Ratio of 36.54% is within the typical range for the Health Care Providers & Services industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | NOW | UNH |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 2.88% |
| Dividend Payout Ratio (TTM) | 0.00% | 36.54% |
Valuation
Price-to-Earnings Ratio (TTM)
NOW
111.05
Software Industry
- Max
- 149.35
- Q3
- 100.21
- Median
- 47.97
- Q1
- 26.77
- Min
- 11.68
A P/E Ratio of 111.05 places NOW in the upper quartile for the Software industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.
UNH
12.70
Health Care Providers & Services Industry
- Max
- 55.89
- Q3
- 30.85
- Median
- 21.17
- Q1
- 12.63
- Min
- 0.00
UNH’s P/E Ratio of 12.70 is within the middle range for the Health Care Providers & Services industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
Price-to-Sales Ratio (TTM)
NOW
15.30
Software Industry
- Max
- 25.24
- Q3
- 13.52
- Median
- 8.15
- Q1
- 4.87
- Min
- 0.98
NOW’s P/S Ratio of 15.30 is in the upper echelon for the Software 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.
UNH
0.64
Health Care Providers & Services Industry
- Max
- 3.10
- Q3
- 1.74
- Median
- 0.67
- Q1
- 0.24
- Min
- 0.00
UNH’s P/S Ratio of 0.64 aligns with the market consensus for the Health Care Providers & Services industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
Price-to-Book Ratio (MRQ)
NOW
19.48
Software Industry
- Max
- 30.95
- Q3
- 14.91
- Median
- 7.75
- Q1
- 3.60
- Min
- 0.38
NOW’s P/B Ratio of 19.48 is in the upper tier for the Software industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.
UNH
2.82
Health Care Providers & Services Industry
- Max
- 7.61
- Q3
- 4.32
- Median
- 2.53
- Q1
- 1.14
- Min
- 0.77
UNH’s P/B Ratio of 2.82 is within the conventional range for the Health Care Providers & Services 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 | NOW | UNH |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 111.05 | 12.70 |
| Price-to-Sales Ratio (TTM) | 15.30 | 0.64 |
| Price-to-Book Ratio (MRQ) | 19.48 | 2.82 |
| Price-to-Free Cash Flow Ratio (TTM) | 48.48 | 10.70 |