UnitedHealth Group Incorporated vs Cigna
UNH
UnitedHealth Group Incorporated NYSE
$405.80 ▼ 0.84%
VS
CI
Cigna Corp NYSE
$279.46 ▼ 1.28%
Last updated: (1m ago) • UNH at $405.80, CI at $279.46
CleaRank Financial AI • Data from TwelveData & CoinGecko
Reviewed by CleaRank editorial team. Data refreshed daily. Not financial advice.
Comparative Analysis
CI emerges as the superior investment based on its more attractive valuation and stronger profitability metrics, despite UNH's higher market capitalization and current momentum indicators. CI's lower P/E ratio suggests greater value for the investor's dollar, while its superior Return on Equity indicates more efficient capital utilization. Although UNH shows stronger short-term technical signals, CI's fundamental strengths present a more compelling case for long-term capital appreciation. The analysis favors CI for its balanced profile of value and profitability.
Key Differentiator
Valuation and profitability are the decisive factors. CI's significantly lower P/E ratio (11.96 vs. 30.22) and superior Return on Equity (16.27% vs. 11.96%) present a more compelling fundamental case. While UNH shows stronger short-term technical momentum, CI offers better value and capital efficiency, making it the preferred choice for investors prioritizing these aspects.
Joint Outlook
The outlook favors CI due to its fundamental strengths, with potential for steady appreciation driven by its attractive valuation and efficient operations. If CI can maintain its revenue growth and profitability, it is well-positioned for continued performance. UNH's outlook is more mixed; its strong momentum could continue in the short term, but its high valuation poses a risk. A market rotation towards value or a slowdown in UNH's growth could lead to underperformance relative to CI. Over the next 6-12 months, CI appears to offer a more robust risk-reward profile.
Price Analysis Comparison
Valuation Metrics
| Metric | UNH | CI |
|---|---|---|
| P/E Ratio | 30.44 | 11.96 |
| Market Cap | 368.52B | 73.93B |
| Price/Sales | 0.82 | 0.27 |
| Price/Book | 3.74 | 1.77 |
| EV/EBITDA | 19.84 | 7.31 |
| Dividend Yield | N/A | N/A |
CI offers a clear valuation advantage over UNH. CI trades at a P/E of 11.96, significantly lower than UNH's P/E of 30.22. This suggests that investors are paying a premium for UNH's earnings compared to CI. While UNH's market cap is substantially larger, CI's lower valuation multiple, coupled with a competitive revenue growth rate of 4.6% versus UNH's 2%, positions CI as the more attractively priced asset for value-oriented investors seeking growth.
Profitability & Efficiency
| Metric | UNH | CI |
|---|---|---|
| Rev. Growth (Qtly) | 2.00% | 4.60% |
| Profit Margin | 2.68% | 2.26% |
| Return on Equity | 12.18% | 16.27% |
| Return on Assets | 3.78% | 4.78% |
| Debt/Equity | 73.98 | 72.81 |
CI leads in capital efficiency and profitability. CI's Return on Equity (ROE) of 16.27% is notably higher than UNH's 11.96%, signifying superior profitability relative to shareholder equity. CI also boasts a stronger Return on Assets (ROA) at 4.78% compared to UNH's 3.78%, indicating more effective utilization of its asset base to generate profits. Although UNH has a slightly higher net profit margin (2.68% vs. 2.26%), CI's superior ROE and ROA present a more compelling picture of overall financial health and operational efficiency.
Earnings Reality Check
UNH
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CI
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Technical Indicators
| Indicator | UNH | CI |
|---|---|---|
| RSI (14) | 69.56 | 57.88 |
| 50-Day MA | $378.62 | $284.14 |
| 200-Day MA | $335.00 | $281.09 |
UNH exhibits stronger short-term momentum signals. UNH's RSI of 69.03 and MACD of 9.50 suggest it is in a strong upward trend, approaching overbought territory. Its price is also comfortably above both its 50-day ($374.66) and 200-day ($334.05) moving averages. Conversely, CI's RSI is a more moderate 57.28, and its MACD is near zero (0.91), indicating less aggressive momentum. CI's price is trading slightly above its 50-day ($283.82) and 200-day ($281.32) averages, suggesting a more consolidated trend. While UNH shows more immediate strength, CI's position above key averages indicates underlying support.
AI Analyst Sentiment
UNH
Buy
Technical Score: 75/100
CI
Buy
Technical Score: 68/100
Institutional positioning favors UNH's current momentum. UNH's technical indicators, including a higher RSI and MACD, suggest stronger recent investor interest and upward price pressure. This often correlates with increased institutional buying in the short term. CI's more subdued technicals indicate a less pronounced immediate sentiment shift, though its lower valuation may attract value-focused institutional investors over the longer term. The current data points towards a more positive short-term sentiment for UNH.
Note: While UNH shows stronger short-term technical momentum (Buy 75/100), the AI comparative analysis favors CI (Buy 68/100) based on its overall trend structure, fundamentals, and risk-adjusted outlook.
Risk Stratification
| Metric | UNH | CI |
|---|---|---|
| Beta (Volatility) | 0.65 | 0.30 |
| Sharpe Ratio | 0.00 | -0.34 |
UNH faces valuation risk, while CI contends with slower momentum. UNH's high P/E ratio of 30.22 presents a risk of multiple compression if growth expectations are not met or if market sentiment shifts towards value. Its RSI nearing 70 also suggests potential for a short-term pullback. CI's primary risk lies in its less robust momentum; its lower RSI and MACD indicate a slower upward trajectory, potentially underperforming in a strong market rally. Furthermore, CI's smaller market capitalization could expose it to greater volatility during sector-wide downturns.
Comparative ProTips
- Consider CI for its value proposition and superior capital efficiency, especially if seeking long-term investment.
- Monitor UNH's technicals closely; a pullback from current levels could present a buying opportunity if fundamentals remain strong.
- Given CI's lower valuation and higher growth, it may offer more upside potential if market conditions favor value stocks.
Monte Carlo Projection (10yr)
Actionable Trade Plans
Compare entry, exit, and risk management levels for both assets
Select Your Trade Bias
Risk Tolerance
Conservative 3% Aggressive
Portfolio Value
$ ✎
Position Size: $200 - $300 per asset
UNH
Current: $405.80
ENTRY ZONES
Conservative
$385.51
Aggressive
$405.80
RISK MANAGEMENT
STOP LOSS
$373.94
MAX LOSS
-3%
Volatility-Adjusted Stop Loss
Calculated based on volatility and technical support levels.
Profit Targets (Based on Conservative)
+5%
$404.79
+10%
$424.06
+15%
$443.34
CI
Current: $279.46
ENTRY ZONES
Conservative
$265.49
Aggressive
$279.46
RISK MANAGEMENT
STOP LOSS
$257.52
MAX LOSS
-3%
Volatility-Adjusted Stop Loss
Calculated based on volatility and technical support levels.
Profit Targets (Based on Conservative)
+5%
$278.76
+10%
$292.04
+15%
$305.31
Calculate Your Trade
ℹ️ Disclaimer
This comparison involves assets with varying risk profiles. The content is for educational purposes only. Identifying the stronger asset is based on relative strength (RS) and technical convergence. Past correlation does not guarantee future lockstep movement. Trading involves risk of loss. Note: The AI favored CI based on current technical setup. This is valid for the specified timeframe only.